Microeconomics and macroeconomics

Microeconomics looks __ (1) __ interactions through individual markets, given scarcity and government regulation. A given market might be for a product, say fresh corn, or the services of a factor __ (2) __ production, say bricklaying. The theory considers aggregates __ (3) __ quantity demanded by buyers and quantity supplied by sellers __ (4) __ each possible price per unit. It weaves these together to describe how the market may reach equilibrium as to price and quantity or respond __ (5) __ market changes over time.

This is broadly termed supply and demand analysis. Market structures, such as perfect competition and monopoly, are examined as to implications __ (6) __ behavior and economic efficiency. Analysis __ (7) __ change __ (8) __ a single market often proceeds from the simplifying assumption that behavioral relations in other markets remain unchanged, that is, partial-equilibrium analysis. General-equilibrium theory allows __ (9) __ changes __ (10) __ different markets and aggregates across all markets, including their movements and interactions toward equilibrium.

Macroeconomics examines the economy as a whole to explain broad aggregates and their interactions "top down," that is, using a simplified form __ (11) __ general-equilibrium theory. Such aggregates include national income and output, the unemployment rate, and price inflation and subaggregates like total consumption and investment spending and their components. It also studies effects __ (12) __ monetary policy and fiscal policy.

__ (13) __ at least the 1960s, macroeconomics has been characterized __ (14) __ further integration as to micro-based modeling of sectors, including rationality __ (15) __ players, efficient use __ (16) __ market information, and imperfect competition. This has addressed a long-standing concern __ (17) __ inconsistent developments of the same subject.

Macroeconomic analysis also considers factors affecting __ (18) __ the long-term level and growth __ (19) __ national income. Such factors include capital accumulation, technological change and labor force __ (20) __ growth.

X. Read the text and choose the correct word or words from A, B, C or D to fill in each gap: