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Is modern macroeconomics concerned with distribution?

A) Yes, significantly
B) No, primarily growth-oriented
C) Partially, but not extensively
D) Occasionally, in specific contexts

1 Answer

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Final answer:

Macroeconomics does pay attention to distribution to some extent, especially in the context of economic crises, although its primary emphasis remains on long-term economic growth.

Step-by-step explanation:

Modern macroeconomics does concern itself with distribution, although its primary focus has traditionally been on long-term economic growth and stability. The philosophy of macroeconomics, as described by Herman Daly, suggests a balance across a variety of goods and services, similar to balancing the load on a boat to prevent capsizing. Neoclassical economists, specifically, tend to focus more on long-term economic issues, including growth and efficiency over short-term concerns like recessions. However, macroeconomics cannot entirely ignore distributional aspects, especially in the context of growing inequalities and during periods of economic crisis, such as the pandemic, where governments have to address high unemployment and disparities while also laying the groundwork for long-term growth through investments in technology, education, and physical capital.

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