Macroeconomics is:
A) based on microeconomic foundations.
B) completely separate from microeconomics.
C) explicitly based on microeconomic behavior.
D) a subsidiary branch of microeconomics.

Question

Quizplus · Accepted Answer

Macroeconomics is based on microeconomic foundations, as it uses concepts such as supply and demand, production, and consumption at an aggregate level to analyze the economy as a whole. Therefore, macroeconomics cannot be completely separate from microeconomics, nor is it a subsidiary branch of it. However, macroeconomics does look explicitly at the behavior of the economy as a whole, rather than individual behavior.

Macroeconomics Is