Primarily, macroeconomists use microeconomic principles to study
A) business cycles and trends in the stock market.
B) long-run economic growth and business cycles.
C) trends in the stock market and long-term economic growth.
D) long-run economic growth and employment policies.
E) short-run and long-run economic growth.

Question

Quizplus · Accepted Answer

Macro- and microeconomic principles are closely related and macroeconomists use microeconomic principles to study long-run economic growth and business cycles. Microeconomic principles are used to understand the behavior of individual agents (e.g. households, firms) and how their interactions in markets determine prices and quantities. Macro-economists use these principles to understand the behavior of aggregate variables (e.g. GDP, inflation) and how their interactions in the economy determine long-run economic growth and business cycles.

Primarily, Macroeconomists Use Microeconomic Principles to Study