Question

6. Microeconomics and macroeconomics Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics. Microeconomics Macroeconomics The effect of an increase in the money supply on the rate of inflation The effect of government regulation on a monopolist's production decisions The effect of federal government spending on the national unemployment rate

Answer 1

Answer:

Microeconomics has to do with individual households and firms and the decisions they make in an economic setting.

Macroeconomics on the other hand deals with the economy as a whole which means that figures are more aggregated here.

The effect of an increase in the money supply on the rate of inflation. MACROECONOMICS.

This has to do with how the entire economy will be affected as a result of a change in money supply so is Macroeconomics.

The effect of government regulation on a monopolist's production decisions. MICROECONOMICS.

This relates to how government regulation will affect an individual monopolist so is Microeconomics.

The effect of federal government spending on the national unemployment rate. MACROECONOMICS.

This has to do with the national unemployment rate which is an aggregated figure to represent unemployment as a whole in the economy so this is most definitely Macroeconomics.