Determine whether each of the following topics would more likely be studied in microeconomics or microeconomics

1. The effect of a large government budget deficit on the economy's price level (b) macroeconomics. Macroeconomics looks at the overall price level whereas microeconomics studies the prices of different markets.

2. The effect of an increase in the money supply on the rate of inflation (b) macroeconomics. Similar to the previous answer, inflation is a measure of an increase in the price level, so is part of macroeconomics.

3. The effect of government regulation on a monopolist's production decisions (a) microeconomics. Although government regulation would typically be considered part of macroeconomics, this example is part of microeconomics because it is looking specifically at a firm's output decisions, which is part of microeconomics.