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 the above.

Question

Quizplus · Accepted Answer

Both microeconomic and macroeconomic models use demand and supply as the basic organizing framework. Microeconomic models focus on individual markets and how demand and supply interact to determine prices and quantities. Macro models look at the economy as a whole and how demand and supply interact to determine aggregate output, employment, and prices. Purely competitive markets, government planning of the economy, and democratic socialism may play a role in some models, but they are not the basic organizing framework for all economic models.

The Basic Organizing Framework for Both Microeconomic and Macroeconomic Models