Question

Does macroeconomics employ a representative or heterogeneous agent?

A) Representative
B) Homogeneous
C) Variable-based
D) Diverse

Answer 1

Macroeconomics employs representative agents, which are hypothetical individuals or groups that share the same economic characteristics and behaviors.

Step-by-step explanation:

Macroeconomics employs representative agents, which are hypothetical individuals or groups that share the same economic characteristics and behaviors. These agents are a simplified representation of the diverse individuals and firms in an economy. By using representative agents, macroeconomists can analyze and model the economic behavior of the entire economy.