23. A balanced federal budget and a balance of trade are secondary goals of macroeconomics, while growth in

the standard of living (for example) is a primary goal. Why do you think that is so?

24. Macroeconomics is an aggregate of what happens at the microeconomic level. Would it be possible for

what happens at the macro level to differ from how economic agents would react to some stimulus at the

micro level? Hint:Think about the behavior of crowds.

25. Why is it unfair or meaningless to criticize a theory as “unrealistic?”

26. Suppose, as an economist, you are asked to analyze an issue unlike anything you have ever done before.

Also, suppose you do not have a specific model for analyzing that issue. What should you do? Hint:What

would a carpenter do in a similar situation?

27. Why do you think that most modern countries’ economies are a mix of command and market types?
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