For macroeconomic purposes,it is assumed that all consumers in the economy
A) are diverse.
B) are not identical.
C) are identical.
D) exhibit differences.
E) exhibit different preferences.

Question

Quizplus · Accepted Answer

For macroeconomic analysis and modeling purposes, it is assumed that all consumers in the economy are identical in terms of their behavior and preferences. This assumption allows macroeconomists to simplify the analysis by aggregating the behavior of individual consumers into representative or average behavior. While it is true that real consumers exhibit differences and diverse preferences, such heterogeneity can complicate macroeconomic analysis and make it more difficult to draw general conclusions about the overall behavior of the economy. Therefore, the assumption of identical consumers is a practical and useful simplification for macroeconomic analysis purposes.

For Macroeconomic Purposes,it Is Assumed That All Consumers in the Economy