What are the two basic principles of aggregation?
The two principles are:
1 . Although the composition of demand and supply in the various markets may be terribly important for some purposes (such as how income is distributed and the diets people enjoy), it may be of little consequence for the economy-wide issues of growth, inflation, and unemployment?the issues that concern macroeconomists.
2 . During economic fluctuations, markets tend to move up or down together.
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When a monopolistically competitive firm cuts its price to increase its sales, it experiences a gain in revenue due to the
A) output effect. B) substitution effect. C) income effect. D) price effect.
In 1910 _____________ of children between the ages of 10 and 15 had jobs, but by 1920, this percentage had fallen to ____________
a. 50 percent; 25 percent b. 30 percent; 20 percent c. 20 percent; less than 10 percent d. 10 percent; less than 1 percent