Macroeconomics deals with the analysis of all of the following questions except: a. why do national...

Macroeconomics deals with the analysis of all of the following questions except:

a. why do national economies grow.

b. what determines a nation's savings and investments.

c. how does a central bank influence inflation.

d. why does a country experience recessions.

e. how does Microsoft price its software packages.

Expert Solution

Macroeconomics is an extensive term and it usually deals with an economy and its markets in a larger scale. Therefore, it focuses on the reason behind the growth of national economies, factors that determine the savings and investment of a country, the inflation and how it is influenced by the central bank as well as the reason behind the recession. The study of macroeconomics does not deal with the analysis of how the Microsoft prices its software packages (option e), as it is not one of the factors that affect the economy on a whole. Minor concerns like this would be included in the study of microeconomics which deals with the behaviour of individuals and organisations and their way of regulating their choices.

Rahul Sunny answered 2 years ago

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