The study of an economy's price level is explicitly a part of
A) macroeconomics.
B) microeconomics.
C) positive economics.
D) normative economics.

Question

Quizplus · Accepted Answer

The study of an economy's price level falls under the domain of macroeconomics, which deals with the analysis of aggregate economic activity, including inflation, economic growth, and employment. Microeconomics, on the other hand, focuses on individual economic behavior and decisions, such as how consumers choose to allocate their budget and how firms set prices. Positive economics is concerned with describing and explaining how the economy functions, while normative economics deals with the value judgments and policy prescriptions that should guide economic decision-making.

The Study of an Economy's Price Level Is Explicitly a Part