Answer to Question #320176 in Macroeconomics for Isay

Question

Classify the following topics as relating to microeconomics or macroeconomics. a. a familys 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 firms decision about how many workers to hire e. the relationship between the inflation rate and changes in the quantity of money

Answer 1

A) This is a microeconomics topic since this issue relates to a family regarding it's personal savings and an individual unit in the economy.

B) Macroeconomics. The decision taken affects the general population of an economy to ensure they have a good, clean environment.

C) Macroeconomics since the amount of saving in an economy is directly proportional to its growth.

D) This is a microeconomics issue. Firms decide on how many workers to hire as an individual unit in the economy.

E) Macroeconomics.