Macroeconomics and microeconomics are complementary in that
A) macroeconomics explores the context within which microeconomic decisions are made
B) microeconomics takes a broader look at the issues upon which macroeconomics is more narrowly focused
C) microeconomics seeks to understand the economy as it is, while macroeconomics seeks to determine how the economy ought to be designed
D) microeconomics examines market-based economies, whereas macroeconomics examines command economies
E) macroeconomics studies private behavior, while microeconomics studies public behavior

Question

Quizplus · Accepted Answer

Macroeconomics and microeconomics are complementary because they both analyze different aspects of the same economy. Microeconomics explains how individuals and firms make decisions and interact with each other in markets, while macroeconomics explores the broader context of the economy, such as inflation, unemployment, and economic growth, which affects these micro-level decisions. Therefore, macroeconomics explores the context within which microeconomic decisions are made.

Macroeconomics and Microeconomics Are Complementary in That