Macroeconomics: Definition, Importance, and Limitations

Micro-level business decision-making

Regional supply and demand dynamics

Government fiscal and monetary policies (correct)

Household budget management

Individual consumer behavior

Small-scale market interactions

International trade patterns

Aggregate economy-wide phenomena (correct)

They oversimplify complex economic interactions (correct)

They do not consider international economic factors

They cannot capture individual consumer preferences

They are unable to predict short-term fluctuations

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