How does microeconomics relate to macroeconomics?
What will be an ideal response?
Microeconomics primarily examines the behaviour of individual households and firms, whereas macroeconomics concentrates on the behaviour of consumers and firms in the aggregate. Macroeconomics studies economic problems as they influence the whole of society.
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On a coupon bond, the yield to maturity
A) always equals the coupon rate. B) equates the present value of all the bond's payments to its price today. C) increases when the market price of the bond increases. D) equals the coupon payment divided by the current price of the bond.
If the demand for the Ford Mustang increases, we would expect Ford to
A) keep the price of Mustangs constant, regardless of the cost or benefit of a price change. B) increase the price of Mustangs to keep pace with the increase in demand. C) increase the price of Mustangs only if the benefit of a price increase outweighs the cost. D) decrease the price of Mustangs to maintain the increase in demand.
According to the U.S. Department of Commerce, a group of two or more persons living together who are related by birth, marriage, or adoption is known as a
a. household. b. family. c. Lorenz unit. d. quin tile.
Rhonda views movie tickets and DVD rentals to be substitute forms of entertainment. An increase in the price of a DVD rental will probably result in an increase in the: a. supply of movie tickets
b. quantity of movie tickets demanded. c. quantity of DVD rentals demanded. d. demand for movie tickets.