Is inflation a macroeconomic or a microeconomic question? Why?
What will be an ideal response?
Inflation is a macroeconomic question because it deals with an economy-wide phenomenon. The price increase of a specific product, such as gasoline, would be a microeconomic matter. Since inflation deals with prices in the economy as a whole, it is a macroeconomic concern.
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Entrepreneurs obtain control over the resources employed in the projects they undertake by
A) acquiring ownership through investment of their own funds. B) borrowing funds with which to purchase the resources. C) floating new issues of stock or bonds. D) offering credible guarantees to owners of resources. E) reinvesting the profits from previous successful projects.
By 1860, two-thirds of America's woolen output was produced in:
a. the area surrounding Philadelphia. b. New England. c. the Mid-Atlantic states. d. New York city.
Markets fail to allocate resources efficiently when
a. demanders and suppliers cannot agree on a price. b. goods are rival in consumption and excludable. c. property rights are not well established. d. too many buyers and sellers exist in the same market.
The Great Depression occurred in the early:
A. 1950s. B. 1960s. C. 1930s. D. 1900s.