The basic organizing framework for both microeconomic and macroeconomic models is
A)purely competitive markets.
B)government planning of the economy.
C)demand and supply.
D)democratic socialism.
E)All of these responses are correct.

Question

Quizplus · Accepted Answer

Demand and supply serve as the basic organizing framework for both microeconomic and macroeconomic models. They are the foundation for understanding how markets function and how prices are determined. While competitive markets are important in microeconomics, they are not the only type of market structure that can exist in reality. Similarly, while government planning can play a role in macroeconomic policy, it is not the organizing framework for models. Democratic socialism is a political ideology, not an organizing framework for economic models.

The Basic Organizing Framework for Both Microeconomic and Macroeconomic Models