Answer to Question #309007 in Microeconomics for Kinza Tariq

Question

1. Provide examples of the types of policy questions that macroeconomists ask. Why would macroeconomists disagree on these questions?

Answer 1

Microeconomic policies are directed towards achieving improvements in economic efficiency. Examples of the types of policy questions include; 

• Fiscal and monetary policy
• Competition policy
• Tax policy
• Trade and exchange rate policies
• Price controls
• External debt sustainability

Microeconomists tend to disagree on these questions due to the use of different analytics on economic perspectives like Keynesian economics and free-market economics. In contrast to the key concepts such as marginal utility, the elasticity of demand, and the elasticity of supply, economists weigh these components differently concerning economic theories and economic forecasts. Thus, the interpretation and outcome are different perspectives on the economic system.