Macroeconomics Is Primarily Concerned with Studying Two Broad Topics

question 39

Multiple Choice

Macroeconomics is primarily concerned with studying two broad topics:

• A)long-run economic growth and short-run business cycles.
• B)the price of oil and gas abroad and prices of energy in the domestic market.
• C)the stock market and the housing market.
• D)household incomes and firms' profits.

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Definitions:

Balance of Trade

The difference in value between a country's imports and exports over a given period, indicating trade surplus or deficit.

Tariffs

Taxes imposed by a government on imported or exported goods to regulate trade, often used to protect domestic industries from foreign competition.

Merchandise Trade Deficit

The situation that occurs when a country imports more goods than it exports, leading to a negative trade balance.

European Union

A political and economic union of 27 European countries that are located primarily in Europe, aiming to ensure peace, prosperity, and freedom of movement.