Which one of the following is a macroeconomic issue?Question 4Answera.A sharp rise in the price of vegetablesb.A shortage of maths teachersc.A surplus of tomatoes in a cityd.A rise in the inflation rate
Question
Which one of the following is a macroeconomic issue?Question 4Answera.A sharp rise in the price of vegetablesb.A shortage of maths teachersc.A surplus of tomatoes in a cityd.A rise in the inflation rate
Solution
The correct answer is d. A rise in the inflation rate.
Macroeconomics is a branch of economics that studies the behavior and performance of an economy as a whole. It focuses on the aggregate changes in the economy such as unemployment, growth rate, gross domestic product and inflation.
So, a rise in the inflation rate is a macroeconomic issue because it affects the economy as a whole. It is not limited to a specific group, sector, or market.
On the other hand, a sharp rise in the price of vegetables, a shortage of maths teachers, and a surplus of tomatoes in a city are microeconomic issues. Microeconomics focuses on the study of individual behavior in an economy, or of the organizations, as they deal with the basic elements of the economy, including individual markets, industries, or sectors.
Similar Questions
Classify the following issues as relating to microeconomics or macroeconomics.a. A family’s decision about how much income to save.b. The effect of government regulations on auto emissionsc. The impact of higher national savings on economic growthd. A firm’s decision about how many workers to hire.e. The relationship between the inflation rate and changes in the quantity of money
Which of the following does macroeconomics endeavor to answer?i. What role does the government play in recessions, booms, and determining the rate of inflation?ii. What caused the currency crises in Mexico in the mid-1990s and in many Asian economies at the end of the 1990s?iii. How does a dairy farmer react to rising milk prices?Question 1AnswerSelect one:a.i and iib.i, ii, and iiic.ii onlyd.iii onlye.i and iii
Macroeconomic equilibrium occurs at a point where:Question 38Select one:a.Aggregate Demand is more than Aggregate Supplyb.Aggregate Demand is increasing and Aggregate Supply is decreasing.c.Aggregate demand is decreasing and Aggregate Supply is increasing.d.Aggregate Demand is less than Aggregate Supply.e.Aggregate Demand is equal to Aggregate Supply.
Inflation affects an economy by:A.limiting international trade opportunities.B.making prices rise over time.C.reducing the size of the labor market.D.increasing the value of currency.
A country is dealing with a serious macroeconomic problem. The value of the country's currency has dropped rapidly in recent months. Products that used to sell for $10 now cost over $100 at stores. People who saved money for years now have very little wealth, as their savings are worth much less than before.Which problem is this country dealing with?A.A rapid growth in GDPB.A high level of inflationC.A low per capita GDPD.A high unemployment rate
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.