Question

9
select all the correct answers.
which of the following statements are true?
□ economic stability means fair distribution of goods in an economy.
□ full employment is a macroeconomic goal.
□ inflation is a fall in the prices of goods and services.
□ inflation is a rise in the prices of goods and services.
□ microeconomics studies the economy as a whole.

Explanation:

• Full employment: It is indeed a macroeconomic goal as macroeconomics deals with the economy as a whole, including aspects like employment levels.
• Inflation: By definition, inflation is a rise in the general price level of goods and services.

• Economic stability: It refers to steady economic growth, low - inflation, and stable employment levels, not just fair distribution of goods.
• Microeconomics: Studies individual economic units like firms and households, not the economy as a whole (that's macroeconomics).
• Inflation (fall in prices): A fall in prices is deflation, not inflation.

Answer:

• Full employment is a macroeconomic goal.
• Inflation is a rise in the prices of goods and services.