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Macroeconomic Behavior Is the Sum of All the Microeconomic Decisions

question 193

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Macroeconomic behavior is the sum of all the microeconomic decisions made by individual households and firms.


Definitions:

National Saving

The total saving of an economy, consisting of both private saving (by households and businesses) and public saving (government surplus).

Private Saving

The portion of households' income that is not used for consumption or paying taxes, but instead is saved.

National Saving

The total amount of savings generated within a country, calculated as the sum of private savings (by individuals and businesses) and public savings (government surplus), which is critical for funding investment.

Disposable Income

The amount of money a household has available for spending and saving after income taxes have been accounted for.

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