Question

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.

Short answer

At the micro-level, the choices would be of a person or firm that doesn't affect aggregate until or unless it becomes the decision of a group.

Step-by-step solution

Step 1. Definition

Macroeconomics deals with the economy as a whole.Microeconomics is the study of the individual unit.

Economic Agent is any person who contributes to economic activities.

Step 2. Concept

An individual's preference for noodles doesn't impact the demand and supply of noodles in an economy but, if a large number of individuals decided to eat or skip noodles then, it would have an impact on the demand for noodles.

Similarly, an individual's choices don't impact the price or demand of any commodity but collectively they have a greater impact.