Question

Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics. 

	Microeconomics	Macroeconomics
The effect of an increase in the money supply on the rate of inflation
The effect of government regulation on a monopolist's production decisions
The effect of federal government spending on the national unemployment rate

  

Answer 1

Answer

Macroeconomics as the name name suggest studies economics at a macro level ( i.e. National level) while Microeconomics as the name name suggest studies economics at a micro level ( like Firm, market)

(a) As Inflation is a national issue then the effect of increase in money supply on rate of issue must be studied under Macroeconomics

b) Monopolist, firms and even market comes under Micro level. Hence the effect of government regulation on a monopolist producer decision must be studied under Microeconomics

(c) As unemployment rate is a national issue then the effect of federal government spending on rate of unemployment. Hence, this must be studied under Macroeconomics

Answer 2

ANSWER :

First one : Macroeconomics

Second one : Microeconomics

Third one : Macroeconomics