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Unformatted text preview: 2. Why do economists sometimes offer conflicting advice to policymakers? Economists often give conflicting advice to policy makers for two basic reasons first, economists may disagree about the validity of alternative positive theories about how the world works. Secondly economists may have different values and therefore different normative views about what policy should try to accomplish. 3. Classify the following topics as relating to microeconomics or macroeconomics. A. a familys decision about how much income to save ( microeconomics ) B. the effect of government regulations on auto emissions ( macroeconomics) C. the impact of higher national saving on economic growth ( macroeconomics) D. a firms decision about how many workers to hire ( microeconomics ) E. the relationship between the inflation rate and changes in the quantity of money ( macroeconomics )...
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- Summer '10