Author Question: In a one-period economy A) consumption equals disposable income. B) consumption equals ... (Read 106 times)

JGIBBSON · **on:** Jun 30, 2018

In a one-period economy

A) consumption equals disposable income.
B) consumption equals disposable income plus the value of non-market work.
C) savings is always positive.
D) consumers may increase their consumption by borrowing.

Question 2

Explain the difference between Microeconomics and Macroeconomics.

What will be an ideal response?

janeli · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

A

Answer to Question 2

Microeconomics and macroeconomics differ in the economic unit on which they focus. Microeconomics focuses on the individual economic agent, i.e., the consumer or the firm. Whereas macroeconomics considers the economy as a whole. There is a close link between the two branches, however, because many macroeconomic relationships are based on aggregate versions of the behavioral relationships derived on the microeconomic level.