Economics 0455 · IGCSE · Microeconomics and macroeconomics

Microeconomics and macroeconomics — practice question

Which two decisions are macroeconomic?

  • Adecision 1: a school recruits more teachers; decision 2: a firm sets the prices for its products
  • Bdecision 1: a central bank reduces money supply; decision 2: a government spends more on defence
  • Cdecision 1: a government increases tax rates; decision 2: a farmer decides which crops to grow
  • Ddecision 1: a household cuts its energy use; decision 2: a worker accepts an offer of overtime

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