Answer to Question #122276 in Macroeconomics for Preeti Soni

Question

macroeconomics is aggregate of what happen at micro level. Would it be possible for what happens at the macro level to differ from how economic agents would react to some stimulus at micro level.

Answer 1

Yes, its very much possible. A given economy can do well at its microeconomic level and perform dismally at its macroeconomic level.It happens when basic wants are provided for excessively by foreigners.