Macroeconomists Are Able to Study the Entire Economy by

question 47

Multiple Choice

Macroeconomists are able to study the entire economy by

• A) ignoring much of the data available in order to reduce the number of markets that need to be studied
• B) studying only a few markets at a time
• C) simply adding up all the prices and quantities in individual markets
• D) aggregation which reduces the number of markets that need to be studied
• E) dividing total output by the number of markets

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Definitions:

Banker's Acceptance

A short-term financial instrument issued by a company but guaranteed by a bank, commonly used in international trade.

Cash Discount

A reduction in the invoice price offered by a seller to encourage early payment by the buyer.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Credit Extension

Credit extension is the process by which a lender provides funds or permits a borrower to purchase goods or services now with the promise to pay in the future.