The Branch of Economics That Focuses on Decision Making for the Economy

question 134

Multiple Choice

The branch of economics that focuses on decision making for the economy as a whole is called:

• A) normative economics.
• B) macroeconomics.
• C) microeconomics.
• D) consumer economics.

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Definitions:

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulating banks, and ensuring the stability of the financial system.

Government Bonds

Debt securities issued by a government to finance its spending, offering a way for investors to lend money to the government in exchange for interest payments.

Price Level

The price level is a measure of the average prices of goods and services in an economy at a given time, often used to evaluate inflation or deflation.

Money Supply Growth

Refers to the rate at which the amount of money in circulation within an economy increases over a specific period of time.