A) A recent news report stated that the unemployment rate in the country Lithasia had increased from 10.2% to 18.2% from 2003 to 2013 and that the government has adopted strict fiscal measures to expand employment
Would this report be considered microeconomic or macroeconomic analysis?
b) Students in a class are discussing how a monopolist should determine his profit-maximizing output. Would this discussion be considered microeconomic or macroeconomic analysis?
a) This report will pertain to macroeconomics. Macroeconomics refers to the study of an economy as a whole. Macroeconomics covers economy-wide phenomena, like the growth rate of a country's total economic output, the inflation rate, or the unemployment rate. The report suggests that the total unemployment rate in Lithasia has increased from 10.2% to 18.2% from 2003 to 2013. This estimation is a measure of the economy-wide aggregate unemployment, and is covered under macroeconomics.
b) Microeconomics is the study of how individuals, households, firms, and governments make choices. The students are discussing how a single monopolist should determine its profit-maximizing output. This is a discussion of an individual entity and so is considered microeconomic analysis.
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A) higher income and a lower interest rate. B) higher income and an unchanged interest rate. C) an unchanged income and a lower interest rate. D) lower income and an unchanged interest rate. E) an unchanged income and a higher interest rate.
Have unions been successful at raising wages for their members? What about raising wages for all workers?
What will be an ideal response?
The Phillips curve shows the relationship between
a. the rate of inflation and the rate of unemployment. b. the rate of growth of real GDP and the rate of unemployment. c. real prices and real GDP. d. the rate of inflation and the rate of growth of real GDP.
Even if demand for a resource grows over time, ever-rising prices of the resource that result from its growing scarcity still discourage consumption.
Answer the following statement true (T) or false (F)