ECON MACRO
5th Edition
ISBN: 9781337000529
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 5, Problem 1.1P
To determine
The reasons for more attention attributed to national economies as compared to state or provisional economies by the economist.
Concept Introduction:
National Economy: The economy of a nation as a whole, sum of individual units.
National Economy Indicators: This allows analysis of the performance of the economy
Expert Solution & Answer
Explanation of Solution
National economic indicators are better indicators of the economic health of a country than the state economies because state economies are concerned with their regions only. The local, political or economic fluctuations only affect those areas or nearby areas and therefore are less important at the central level. They do not provide the perfect picture at the macro level to the economist. If the economist wants to get the information about the whole country, then he has to give importance to indicators like
NO doubt, states economies are also important and are the pillars of any central economy but wider picture is shown by only the national economies.
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ECON MACRO
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