Question 1
Which of the following is a macroeconomics question?
◦ Should we have a constitutional amendment to balance the federal budget?
◦ Why does a firm decide to enter a particular market?
◦ Should the government prevent the merger of two large firms?
◦ Should the government put a tax on alcohol in an attempt to reduce highway fatalities?
Question 2
We can use macroeconomic analysis to
◦ learn how to balance a checkbook.
◦ study the choices made by households.
◦ understand marginal changes in the macroeconomy.
◦ understand why economies grow.