Trusted by Students Everywhere
Why Choose Us?
0% AI Guarantee

Human-written only.

24/7 Support

Anytime, anywhere.

Plagiarism Free

100% Original.

Expert Tutors

Masters & PhDs.

100% Confidential

Your privacy matters.

On-Time Delivery

Never miss a deadline.

Why is microeconomics a study of aggregate?

Economics Dec 15, 2020

Why is microeconomics a study of aggregate?

Expert Solution

Macroeconomics is referred to as a study of aggregates because it is concerned with variables that affect the economy as a whole. Ideally, it entails the study of the entire markets which operate on a large scale. As thus, the aggregate analysis helps in simplifying views for easy comprehension of the performance of the economy. The study combines the behavior and statistics from different economic sectors in order to determine the performance of the economy.

The term aggregate in macroeconomics refers to the total of a given economic variable. In other words, it can be attributed to the wide or cumulative sum of the different variables in the economy. They include sums of national income, government expenditure, aggregate supply, and aggregate demand. Economists use direct observation and behavior of different sectors to derive macroeconomic models of aggregate behavior with the help of the theories of aggregate economic performance in macroeconomics.

Archived Solution
Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In
Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution
Get Custom Quote
Secure Payment