In Macroeconomic Analysis, the Representative Consumer

question 46

Multiple Choice

In macroeconomic analysis, the representative consumer

• A) denotes the consumer with the average amount of income.
• B) plays the role of a stand-in for all consumers in the economy.
• C) is the consumer who bargains with firms for all workers in the economy.
• D) is always a misleading fiction.
• E) is the consumer with an average standard of living.

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Definitions:

Credits

Entries on the right side of an account, indicating an increase in liabilities, equity, or revenue, or a decrease in assets or expenses.

Posting Reference Notation

A unique code or number used to track the entry of a transaction in the accounting records to its source document.

Journal

A book or electronic record in which transactions are recorded in chronological order before they are posted to ledger accounts.

Page Number

A number assigned to a specific page in a document or book to facilitate organization and reference.