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  • Scope of Macroeconomic Analysis

Prioritizing National Economic Policies

A government's economic advisory council is tasked with identifying the top three most critical issues to address for improving the health of the economy as a whole. They are presented with the following five potential areas of focus:

  1. Investigating the hiring practices of a single, large technology firm.
  2. Launching a national initiative to stimulate the growth of the country's total production of goods and services.
  3. Analyzing the causes of rising income disparities across the entire population.
  4. Implementing a program to reduce the national unemployment rate.
  5. Setting a price cap for a specific pharmaceutical drug.

Which three areas of focus should the council prioritize? Justify your choices by explaining why they represent concerns for the entire economy, and briefly explain why the other two are less representative of this broad perspective.

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