Modern economists are increasingly using microeconomic analysis in macroeconomics because
A) microeconomic theory is more scientific.
B) aggregate outcomes stem from decisions made by individuals, business firms and government.
C) macroeconomic subjects such as inflation affect all individuals.
D) macroeconomics is older and more outdated.
B
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When the economy slows down the:
A. demand for workers increases. B. supply of workers increases. C. demand for workers decreases. D. supply of workers decreases.
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.
A profit-maximizing monopolist produces the rate of output where
A. MR = MC and can set price at any amount it chooses. B. MR = MC and determines price based on ATC. C. MR = MC and determines price based on the demand curve. D. Price = MC.
Public choice economics studies:
A. what individuals choose for themselves. B. how individuals are affected by advertising. C. public sector decision making. D. None of these