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

Question

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

Quizplus · Accepted Answer

The statement regarding an increase in labor costs and its impact on the cost of producing another airplane is a microeconomic analysis as it focuses on the production decisions of individual firms.

Which of the Following Statements Most Likely Lies Within the Realm