Question

In: Economics

Budget deficits and government debt are within the scope of


Budget deficits and government debt are within the scope of 

Select one: 

a. microeconomics. 

b. both microeconomics and macroeconomics. 

c. macroeconomics.

Solutions

Expert Solution

The prime difference between microeconomics and macroeconomics is that microeconomics deals with lower level of entity like for a firm or an individual

But if we talk about macroeconomics then it tells about the broader concept or for the whole economy

Example of market microeconomics can be study of law of demand, law of supply, market of alcohol etc

Macroeconomics helps in studying like unemployment rate, budget deficit etc

So the given statement is a talking about for the whole economy and has a broader concept so it will be classified under macroeconomics

Answer is option C

Rahul Sunny answered 2 years ago
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