Question

Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics. Microeconomics Macroeconomics A.The effect of government regulation on a monopolist's production decisions B.The optimal interest rate for the Federal Reserve to target C.The government's decision on how much to spend on public projects

Answer 1

Answer and Explanation:

Economy is divided into two main fields: Microeconomics and Macroeconomics. Microeconomics studies the decisions of individuals and businesses while Macroeconomics is in charge of analyzing the economy as a whole including decisions made by governments and their countries. Thus:

A) The effect of government regulation on a monopolist's production decisions (Macroeconomics).

B) The optimal interest rate for the Federal Reserve to target (Macroeconomics).

C) The government's decision on how much to spend on public projects (Macroeconomics).