Question

Determine whether each of the following topics would more likely be studied in microeconomics or microeconomics.

The effect of a large government budget deficit on the economy's price level
The effect of an increase in the money supply on the rate of inflation
The effect of government regulation on a monopolist's production decisions

Answer 1

Answer:

The effect of government regulation on a monopolist's production decisions

Explanation:

The effect of a large government budget deficit on the economy's price level

The superavit or deficit of the government is a macroeconomics subject.

The money market is also macroeconomics.

The impact of regulation or specifit taxes or tax extemption on a monopolist's production will be part of microecnomics, because it will impact on which level the monopolist's production finds equilibrium after the legislation.