Select which field of Economics the following scenarios are most likely to fall into 1. The price of beef has increased due to labor shortages 2. Several clothing retail stores have closed in Katy, Texas ? v 3. The US government passed a new spending bill ? 4. In 2019, the US annual inflation rate was about 2% A. Microeconomics B. Macroeconomics
Economics refers to the study of social science that deals with the production, distribution and consumption of goods and services. Economics not only deals with money, it deals with the weightage of multiple choices and alternatives available. Some of the choices involve money while others does not.
Economics is mostly divided into two categories: Microeconomics and macroeconomics.
Microeconomics is mostly focussed on the choices that is made by individuals or some businesses where the cost of goods and services are fluctuating. The components of microeconomics include supply and demand in the market; consumer behaviour; preferences of producers; and, labor markets.
Macroeconomics is the study of economic advancement and the measures taken by the country, which includes the study of policies and the factors that can influence the economy. It deals with the economic growth of the country. Different components of macroeconomics include national output; unemployment; and, inflation.
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