Question : The study of inflation, economic growth, and fiscal policy falls under:
Option 1: Microeconomics
Option 2: Macroeconomics
Option 3: Behavioral economics
Option 4: Development economics
Correct Answer: Macroeconomics
Solution : The correct answer is (b) Macroeconomics.
Macroeconomics focuses on the behavior and performance of an entire economy. It examines aggregate variables such as the overall level of prices (inflation), the rate of economic growth, and the impact of government policies on the overall economy (including fiscal policy). Macroeconomics analyzes the interrelationships between different sectors of the economy, such as consumption, investment, government spending, and international trade. It seeks to understand the factors that influence the overall level of economic activity, employment, inflation, and the stability of the economy as a whole.
Question : The study of international trade patterns and exchange rates falls under:
Option 3: International economics
Option 4: Econometric analysis
Question : The concept of demand and supply is a key topic in:
Option 1: Macroeconomics
Option 2: Microeconomics
Option 3: Both microeconomics and macroeconomics
Option 4: Neither microeconomics nor macroeconomics
Question : The study of how changes in the money supply affect inflation is an example of:
Option 1: Behavioral economics
Option 2: Monetary economics
Option 3: Development economics
Option 4: Urban economics
Question : The government's policy of reducing taxes to stimulate economic growth is known as ____________.
Option 1: Austerity measures
Option 2: Expansionary fiscal policy
Option 3: Contractionary fiscal policy
Option 4: Supply-side economics
Question : The study of individual consumer choices is primarily associated with:
Option 3: Managerial economics
Option 4: International economics
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