Which of the following would likely be considered as a topic of microeconomics?

According to classical economists, in recessions, not only does the unemployment rate increase, so does the

A) interest rate. B) level of fiscal stimulus. C) natural rate of unemployment. D) level of potential output.

Assuming that w and r are both positive, if the long-run expansion path is horizontal, then

A) = 0. B) MRTS is a function of capital only. C) w = r. D) All of the above.