One of the most crucial ideas in macroeconomics is understanding that:
A) zero unemployment is the best way to achieve economic growth.
B) total expenditures or total income both measure total production of an economy.
C) economic downturns can be prolonged by fiscal policy.
D) GNP is the most commonly used measurement of total production.

Question

Quizplus · Accepted Answer

Both total expenditures and total income measure the total production of an economy, which is a crucial idea in macroeconomics. Option A is incorrect because zero unemployment is not always the best way to achieve economic growth. Option C is incorrect because fiscal policy can be used to help an economy recover from downturns, not prolong them. Option D is incorrect because GNP is not always the most commonly used measurement of total production.

One of the Most Crucial Ideas in Macroeconomics Is Understanding