MACROECONOMICS
MACROECONOMICS
14th Edition
ISBN: 9781337794985
Author: Baumol
Publisher: CENGAGE L
Question
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Chapter 5, Problem 1TY
To determine

(a)

Whether rapid growth of Twitter is studied by a microeconomist or a macroeconomist.

Expert Solution
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Explanation of Solution

Macroeconomics studies the economy as a single unit/as a whole. The aggregate effect of the economic factors is observed under macroeconomics.

Microeconomics studies the factors affecting the decision making of a single household and a firm. The economy is divided into individual units under microeconomics.

Twitter is a social media firm. Thus, the study of the growth of Twitter will be done by a microeconomist as the study of an individual firm.

To determine

(b)

Whether a fall in unemployment in the United States is studied by a microeconomist or a macroeconomist.

Expert Solution
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Explanation of Solution

Unemployment is an issue of the entire economy as a fall in unemployment in the United States from 2010 to 2018 is a vast economic issue. It will be studied by a macroeconomist.

To determine

(c)

Whether the comparison of economic growth between Japan and the U.S. is studied by a microeconomist or a macroeconomist.

Expert Solution
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Explanation of Solution

Economic growth refers to the rise in aggregate output due to the development of all the sectors of the economy. Hence, the comparison of economic growth between Japan and the U.S. will be studied by a macroeconomist.

To determine

(d)

Whether the growth of health care costs is studied by a microeconomist or a macroeconomist.

Expert Solution
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Explanation of Solution

An economy comprises three sectors namely primary secondary and tertiary. The tertiary sector further includes other sectors such as health, education, insurance, banking, etc.

The study of the growth of health care costs will be studied by a macroeconomist.

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