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Determine whether each of the following topics would more Nkely be studied in microeconomics or macroeconomics.

Microeconomics and macroeconomics 


Determine whether each of the following topics would more Nkely be studied in microeconomics or macroeconomics. 


MicroeconomicsMacroeconomics
The optimal interest rate for the Federal Reserve to target

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

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


business   economics   
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Answer #1

Microeconomics is the study of the economy at individual, group or company level. It deals with individual decisions, which affect a small number of people.
Macroeconomics is the study of economics at a whole. It deals with aggregates.

1. The optimal interest rates that Fed targets affects the whole economy and influence all other rates in the economy. Hence, it would be studied under MACROECONOMICS.
2. Effects of government tax policy is again associated with economy as a whole and it also affects long term economic growth. Hence, it would be studied under MACROECONOMICS.
3. Effect of government regulation on a monopolist's production decisions affect only the economic decisions of a company even though it is a monopolist. Hence, it would be studied under MICROECONOMICS.

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Answer #2

ANSWER :


First one : Macroeconomics


Second one : Macroeconomics


Third one : Microeconomics

answered by: Tulsiram Garg
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