Asked by Eskarlin Sanchez on Jun 16, 2024
Verified
The ultimate objective of macroeconomics is to:
A) reduce the unemployment rate in an economy.
B) stabilize the growth rate in an economy.
C) develop and test theories about how the overall economy works.
D) improve the international competitiveness of U.S.financial markets.
E) maximize the efficiency of government intervention in the marketplace.
Macroeconomics
The branch of economics that studies overall economic dynamics such as total output, employment levels, and inflation across an entire economy.
Unemployment Rate
A measure of the percentage of the labor force that is jobless and actively seeking employment.
Growth Rate
The percentage increase in the value of a particular variable (such as GDP, population) over a certain period of time, indicating the rate at which it is expanding or declining.
- Determine the extent of macroeconomics, encompassing its instruments and goals.
Verified Answer
DM
deliah mooneyJun 21, 2024
Final Answer :
C
Explanation :
The ultimate objective of macroeconomics is to develop and test theories about how the overall economy works. This includes understanding how different factors such as inflation, unemployment, and economic growth interact with each other and how government policies can influence these factors. While reducing unemployment and stabilizing growth are important goals, they are not the ultimate objective of macroeconomics. Improving international competitiveness and maximizing government intervention efficiency are also not the primary goals of macroeconomics.
Learning Objectives
- Determine the extent of macroeconomics, encompassing its instruments and goals.