Which of the following does macroeconomics endeavor to answer?
i. What role does the government play in recessions, booms, and determining the rate of inflation?
ii. What caused the currency crises in Mexico in the mid-1990s and in many Asian economies at the end of the 1990s?
iii. How does a dairy farmer react to rising milk prices?
A) iii only
B) ii only
C) i and ii
D) i, ii, and iii
E) i and iii

Question

Quizplus · Accepted Answer

Macroeconomics focuses on broad economic factors and trends, such as government policies during economic cycles (i) and international financial crises (ii). It does not typically deal with individual decision-making processes like a dairy farmer's response to price changes (iii), which falls under microeconomics.

Which of the Following Does Macroeconomics Endeavor to Answer