What is the ultimate objective of macroeconomics?
A) to reduce the unemployment rate
B) to stabilize the economy's growth rate
C) to develop and test theories about how the overall economy works
D) to improve the international competitiveness of Canadian financial markets

Question

What is the ultimate objective of macroeconomics?  
A) to reduce the unemployment rate 
B) to stabilize the economy's growth rate 
C) to develop and test theories about how the overall economy works 
D) to improve the international competitiveness of Canadian financial markets

Quizplus · Accepted Answer

The ultimate objective of macroeconomics is to develop and test theories about how the overall economy works. Macroeconomics seeks to understand the interactions between different economic factors, such as inflation, unemployment, growth, and international trade. While reducing unemployment and stabilizing growth are important goals, they are means to achieving the ultimate objective of developing and testing economic theories. Improving the international competitiveness of Canadian financial markets is not an objective of macroeconomics, but rather a goal of policymakers and regulators.

What Is the Ultimate Objective of Macroeconomics