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What is the relationship between macroeconomic behavior and individual microeconomic decisions?

Option 1: Macroeconomic behavior is entirely independent of microeconomic decisions.

Option 2: Macroeconomic behavior is the sum of all microeconomic decisions.

Option 3: Microeconomic decisions have no impact on macroeconomic behavior.

Option 4: Macroeconomic behavior is determined by government policies alone.

Answer :

Final answer:

2. Macroeconomic behavior is the sum of all microeconomic decisions.

Explanation:

In economics, there is a close relationship between macroeconomic behavior and individual microeconomic decisions. Macroeconomic behavior is not entirely independent of microeconomic decisions, as option 1 suggests.

The correct option is option 2: Macroeconomic behavior is the sum of all microeconomic decisions. Microeconomic decisions, made by individual households and businesses, have a direct impact on the overall performance of the macroeconomy.

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