State whether the following statements are TRUE or FALSE. 5) Micro Economic theory suggests policies to solve the problem of inflation.

State whether the following statements are TRUE or FALSE.

5) Micro Economic theory suggests policies to solve the problem of inflation.

Answer: False

Microeconomics is the study of the behaviour of individual units in an economy. Problems such as inflation relate to the behaviour of the all the economic units simultaneously in an economy. In this regard, it is beyond the scope of microeconomics.

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