Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics. a. The effect of a large government budget deficit on the economy's price level.
b. The effect of government regulation on a monopolist's production decisions.
c. The optimal interest rate for the Federal Reserve to target

macroeconomics.

microeconomics.

macroeconomics.

Explanation:

Macroeconomics is a branch of economics that studies the economy as a whole. Macroeconomics studies economic aggregates such as inflation, unemployment, GDP and growth rate.

The government deficit would affect price levels of the whole economy. Thus, it is a macroeconomic topic.

Interest rate would affect the whole economy.

Microeconomics is a branch of economics that studies the decisions individuals and firms make in response to changes in economic factors. These factors include price, resources etc. it studies how firms and individuals allocate and make decisions about resources

Regulation of the monopolist would only affect the monopolist and its customers possibly. This makes it a microeconomic topic

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the correct answer is - no.

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