Macroeconomists are able to study the entire economy by
A) ignoring much of the data available in order to reduce the number of markets that need to be studied
B) studying only a few markets at a time
C) simply adding up all the prices and quantities in individual markets
D) aggregation which reduces the number of markets that need to be studied
E) dividing total output by the number of markets

Question

Quizplus · Accepted Answer

Macroeconomists use aggregation to reduce the number of markets they need to study in order to analyze the entire economy. This involves combining similar goods and services into broader categories, such as "consumer goods" or "investment goods," which reduces the number of individual markets that need to be analyzed.

Macroeconomists Are Able to Study the Entire Economy by