Why Do the Five Debates Over Macroeconomic Policy Exist

question 15

Multiple Choice

Why do the five debates over macroeconomic policy exist?

• A) mostly because economists disagree over basic issues such as the importance of saving for economic growth
• B) mostly because there are tradeoffs and people disagree about the best way to deal with them
• C) mostly because economic policies have conflicting effects on various groups of people
• D) mostly because people fail to clearly see the benefits or the costs of most changes

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Definitions:

Unrealized Gain

A profit that has occurred on paper due to an investment's increased value but has not yet been realized through a sale.

Market Value

The estimated worth or price at which an asset would trade in a competitive auction setting.

Accounting

The systematic process of recording, analyzing, and reporting financial transactions of a business or individual.

Investment

Allocation of resources, usually money, in the expectation of generating an income or profit.