Macroeconomics can best be described as the
A) analysis of how a consumer tries to spend income.
B) study of the large aggregates of the economy or the economy as a whole.
C) analysis of how firms attempt to maximize their profits.
D) study of how supply and demand determine prices in individual markets.

Question

Quizplus · Accepted Answer

Macroeconomics focuses on the study of the entire economy as a whole, including topics such as inflation, growth, and unemployment. It looks at large aggregates such as Gross Domestic Product (GDP), aggregate consumption, and aggregate investment. Therefore, option B is the best choice. The other options are more related to microeconomics, which deals with the behavior of individuals and firms in individual markets.

Macroeconomics Can Best Be Described as the