Macroeconomics questions need help?

Question

1. What does inflation rate of zero means to the price level?

is it falling rapidly, not changing, falling but slowly,or rising but slowly,?

2. true or false: high unemployment is costly to society, high inflation is not?

3.when economists study output, employment, or inflation in small countries like Estonia or the bahamas, is this microeconomics?

I think its not.

Answer 1

1 - Price level not changing.

2 - False (first part is true but second - inflation is costly too).

3 - It is still macroeconomics.

Answer 2

1. An inflation rate of zero means that the price level is not changing. The key word to recognize is RATE.

2. False: High unemployment and high inflation are both costly to society. High unemployment can lead to higher crime rates, civil unrest, reduced production, etc. High inflation rate leads to equally unsavory outcomes- distorted price signals, reduced investment, etc.

3. No it is still macroeconomics. Microeconomics refers to the study of the decisions individual members or small groups of the economy make - such as firms, households, etc. Macroeconomics looks at economywide factors such as monetary policy.

Answer 3

1.  Its not changing.  If nothing is inflating, nothing is growing.  I'm assuming there is no deflation, which you didn't say (and which would be really really weird)

2.  False-both are costly to society

3.  No, its not.  It doesn't matter how big the countries are, macroeconomics is studying overall trends.  Microeconomics are the nitty gritty calculations.

Answer 4

1. Not changing

2. False

3. No