Discuss some of the fundamental differences between microeconomics and macroeconomics
Microeconomics studies the decisions of individuals and firms, the ways in which these decisions interact, and their influence on the allocation of a nation's resources and the distribution of income. Macroeconomics looks at how entire economies behave and studies the pressing social problems of economic growth, inflation, and unemployment. In short, whereas microeconomics focuses on the decisions of individual units, no matter how large, macroeconomics concentrates on the behavior of entire economies, no matter how small. Although they focus on different subjects, microeconomics and macroeconomics rely on virtually identical tools.
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Self-interest
A) implies that a person must try to increase wealth at all times. B) implies that people will not give away wealth. C) is consistent with many goals that people pursue, including betterment of others. D) applies only to people in market settings.
According to the Friedman-Phelps analysis, in the long run actual inflation equals expected inflation and unemployment is at its natural rate
a. True b. False Indicate whether the statement is true or false