The Economic Problems Studied in Macroeconomics Include

question 40

Multiple Choice

The economic problems studied in macroeconomics include:
1) the level of economic activity;
2) competition policy;
3) the rate of unemployment.

• A)1 only
• B)2 only
• C)3 only
• D)1 and 2
• E)1 and 3

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Definitions:

Price Elasticity

An index reflecting the degree to which the demand for a product varies with a shift in its cost.

Supply

represents the total amount of a product or service that is available for purchase at any given price in a market.

Price Change

Price change refers to the variation in the cost of goods and services over time.

Equilibrium Price

The price in a competitive market at which the quantity demanded and the quantity supplied are equal, there is neither a shortage nor a surplus, and there is no tendency for price to rise or fall.