Below Is a Student's Answer to the Question "What Is

question 613

Essay

Below is a student's answer to the question "What is microeconomics?" If you were the instructor, how would yo correct the student's answer?
"Microeconomics is the study of how government influences the choices made by individuals and businesses an performance of the whole national economy."

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Definitions:

Aggregate Demand Curve

Represents the total spending on domestic goods and services at various price levels, showing the inverse relationship between price level and demand.

Short-run Aggregate Supply

Represents the total amount of goods and services that producers are willing and able to supply at different price levels in the short-term, considering some prices are sticky.

Passive Policy

A government or regulatory approach that involves minimal intervention in the economic affairs of individuals and businesses.

Unemployment

Unemployment refers to the situation where individuals who are capable of working and actively seeking work are unable to find a job.