Which of the following statements most likely lies within the realm of microeconomics?
A) An increase in government spending will increase the aggregate demand for goods and services in the economy.
B) An increase in labour costs will increase the cost of producing another airplane.
C) Unemployment rises during a recession and falls during an expansion.
D) A rapid acceleration of the supply of money may create inflation.

Question

Quizplus · Accepted Answer

The statement focuses on how a microeconomic factor, labor costs, affects the cost of producing a specific product, an airplane.

Option A is more related to macroeconomics as it talks about government spending and its effect on the overall economy.

Option C is also more related to macroeconomics as it discusses the behavior of the economy as a whole, not the behavior of individual firms or markets.

Option D is also more related to macroeconomics as it describes the effect of monetary policy on the overall price level in the economy.

Which of the Following Statements Most Likely Lies Within the Realm