Which of the Following Is a Microeconomic Topic

question 200

Multiple Choice

Which of the following is a microeconomic topic?

• A) The reasons why Kathy buys less orange juice.
• B) The reasons for a decline in average prices.
• C) The reasons why total employment decreases.
• D) The effect of the government budget deficit on inflation.

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Definitions:

Gold Standard

A monetary system where a country's currency or paper money has a value directly linked to gold.

Managed Float

A currency exchange rate policy where a currency's value is allowed to fluctuate in response to foreign exchange market mechanisms, but the central bank may intervene to stabilize the currency if necessary.

Managed Floating

An exchange rate system where a country's currency value is allowed to fluctuate in response to foreign-exchange market mechanisms, but the central bank can intervene to prevent extreme fluctuations.