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Author Question: A currency pegged at a value above the market equilibrium exchange rate is A) depreciating in ... (Read 43 times)

ec501234

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on: Jun 29, 2018
A currency pegged at a value above the market equilibrium exchange rate is
 
  A) depreciating in value relative to its pegged currency.
  B) achieving purchasing power parity.
  C) overvalued.
  D) undervalued.

Question 2

How does microeconomics differ from macroeconomics? Would the supply of iPhones in the United States be studied under microeconomics or macroeconomics? What about the growth rate of total economic output in the national economy?
 
  What will be an ideal response?


smrerig

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Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

Microeconomics is the study of how individuals, households, firms, and governments make choices, and how those choices affect prices, the allocation of resources, and the well-being of other agents. Macroeconomics is the study of the economy as a whole. Macroeconomists study factors that affect overall  in other words, aggregate  economic performance.Macroec onomics is the study of the forest as a whole. Microeconomics is the study of individual trees.
The supply of iPhones refers to the supply of a good by an individual firm, Apple. Therefore, the iPhone market will be studied under microeconomics. Microeconomics studies how individuals, households, firms and governments make choices, and how those choices affect prices and the allocation of resources. The growth rate of total economic output, on the other hand, refers to the aggregate American economy, and is therefore studied under macroeconomics.


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