Question

Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics. The effect of government regulation on a monopolist's production decisions The effects of government tax policy on long-term economic growth The optimal interest rate for the Federal Reserve to target

Answer 1

Answer: See explanation

Explanation:

We should note that microeconomics deal with a particular sector in the economy and not the whole sector. Macroeconomic deals with the whole economy and looks at ways by which the decisions of government have an effect on the whole economy.

Based on the above explanation, the answer is provided below:

• The effect of government regulation on a monopolist's production decisions= Microeconomics

• The effects of government tax policy on long-term economic growth = Macroeconomics

• The optimal interest rate for the Federal Reserve to target = Macroeconomics