We do NOT use microeconomic analysis:
A)to make personal and managerial decisions.
B)to evaluate the merits of public policies.
C)to explain why the U.S.is in a recession.
D)to understand markets and predict changes.

Question

Quizplus · Accepted Answer

Microeconomic analysis focuses on individual markets and decision-making of consumers and firms. It cannot explain macroeconomic phenomena such as recessions, which are influenced by factors such as aggregate demand, monetary policy, and fiscal policy. Therefore, the use of microeconomic analysis cannot explain why the U.S. is in a recession.

We Do NOT Use Microeconomic Analysis