Answer to Question #283756 in Macroeconomics for ABEX

Question

1. In the traditional macroeconomic framework (under open or closed economy), all macroeconomic variables can somehow be categorized as part of the aggregate demand and aggregate supply with equilibrating prices. List as many macroeconomic variables as possible and categorize them under sub-equilibrium and eventually under demand supply

framework. [Hint: Use the goods market, the money market, the labor market equilibrium, and technology].

Answer 1

There are 4 main macroeconomic variables that policymakers should try and manage: Balance of Payments, Inflation, Economic Growth and Unemployment.