Macroeconomics Is Concerned Primarily With

question 10

Multiple Choice

Macroeconomics is concerned primarily with:

• A)the operation of a particular firm.
• B)the labor market.
• C)individual consumer behavior.
• D)aggregate sectors of the economy such as the consumer sector or the business sector.
• E)a detailed examination of how price and output decisions are made in specific markets.

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Definitions:

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible, typically associated with low unemployment rates.

Inflation

The tempo at which the collective cost of goods and services rises, impairing the purchasing potential.

Unemployment Insurance

A government program that provides temporary financial assistance to unemployed workers who have lost their jobs through no fault of their own.

Nominal Rate

The interest rate before adjustments for inflation. It is the rate that is quoted by banks and other financial institutions for savings accounts, loans, and mortgages.