Which of the following statements are true? (plato)
A. Economic stability means fair distribution of goods in an economy.
B. Full employment is a macroeconomic goal.
C. Inflation is a fall in the prices of goods and services.
D. Inflation is a rise in the prices of goods and services.
E. Microeconomics studies the economy as a whole.
The bold choices are the true statements from this question. C in incorrect because D. is correct, inflation is defined as the rise in prices and goods and services. These goods and services inflat as the economy rises.
E. Is incorrect because microeconomics does not study the economy as a whole, rather, it studies single factors and the effects of indvidual decisions.
Full employment is a macrocroeconomic goal because it studies large-scale or general economic factors vs smaller (micro/microeconomic) factors.
Answer:
B.Full employment is a macroeconomic goal.
D.Inflation is a rise in the prices of goods and services.
E.Microeconomics studies the economy as a whole.
Explanation:
A is wrong. Economic stability is a situation in which the economy experiences constant growth and low inflation. It doesn't say anything about fair distribution of goods. E is right because definition of the microeconomics is the same as in plato glossary.
