Classify the following topics as relating to microeconomics or macroeconomics


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. Classify the following topics 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 emissions c. the impact of higher national saving on economic growth d. a firm's decision about how many workers to hire e. the relationship between the inflation rate and changes in the quantity of money

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Answer:

a. Microeconomics

b. Microeconomics

c. Macroeconomics

d. Microeconomics

e. Macroeconomics

Explanation:

Macroeconomics is the kind or the type of economies, which dealt with the studies of an overall or whole economy, involving both the international and the national level. Therefore, this study studies the economy as a whole.

Microeconomics is also the type or the kind of economics, which dealt with how the individual consumers and the firm take decisions. In short, it focuses on the behavior of the individual producers and the consumers. Therefore, it studies the economy as an individual.

So,

a. Its is about family decision which means related to individual family, it will be microeconomics.

b. Effect of regulations of the government on particular sector, which is related to microeconomics.

c. Impact of savings on the economic growth, which is related to the economy as whole, so related to macroeconomics.

d. The decision of the firm regarding the how many workers to be hired, again related to the individual firm, will be a microeconomics.

e. Relationship among the inflation rate and the changes in the money quantity, it is related to economy so it will be macroeconomics.


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