Macroeconomics primarily examines:
A. the behaviour of individual households and firms.
B. how prices are determined within individual markets.
C. broad issues such as national output, employment and inflation.
D. the output levels that maximize the profits of business firms
C. broad issues such as national output, employment and inflation.
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Individuals cannot buy unemployment insurance for themselves. The most likely reason for this is
a. moral hazard. b. imperfect information. c. a culture of poverty. d. the free-rider problem.
It is important to distinguish between the privately held portion of the national debt and the portion held by government agencies and the Federal Reserve system because
a. the government will not have to repay the privately held debt. b. only the privately held debt creates a net interest liability for the federal government. c. the privately held debt does not create a net interest liability for the federal government. d. taxes will have to be raised in order to pay the interest on the debt held by the Federal Reserve system.