Microeconomics involves the analysis of smaller, less developed economies while macroeconomics is concerned with the analysis of larger developed economies
a. True
b. False
B
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What reasons do governments often give to justify the decision to not allow price to ration goods?
What will be an ideal response?
Which of the following is true in long-run equilibrium for both perfect competition and monopolistic competition?
a. Accounting profit is zero. b. Marginal cost equals price. c. Long-run average cost is at a minimum. d. Economic profit is zero.
Government policy to reduce unemployment and increase national output can be illustrated by an
A. outward shift of the aggregate demand curve caused by an increase in government spending. B. outward shift of the aggregate supply curve caused by a reduction in government spending. C. inward shift of the aggregate demand curve caused by an increase in government spending. D. inward shift of the aggregate supply curve caused by a reduction in government spending.
Over the years most monetary policy experts would agree with each of the following statements, except:
A. the reserve requirement is not useful as an operational instrument. B. central bank lending is necessary to ensure financial stability. C. transparency in policy making hinders accountability. D. short-term interest rates are the best tool to use to stabilize short-term fluctuations in prices and output.