In contrast to the conclusions drawn from microeconomics, many economists argue that in macroeconomics, government:
A) control of rent prices increases overall economic activity.
B) intervention in markets usually leaves society as a whole worse off.
C) taxation of goods and services does not cause a deadweight loss of economic welfare.
D) intervention in markets can prevent or reduce the effects of adverse events on the macroeconomy.

Question

Quizplus · Accepted Answer

Many economists argue that in macroeconomics, government intervention in markets can prevent or reduce the effects of adverse events on the macroeconomy, such as recessions, inflation, and unemployment. This is because macroeconomic issues often affect the economy as a whole, rather than just individual firms or markets, and thus require coordinated policy responses that may not occur through market mechanisms alone.

In Contrast to the Conclusions Drawn from Microeconomics, Many Economists