Question

economics is broken into two fields: microeconomics and macroeconomics. Most issues fall in one or the other; however, the COVID-19 virus has implications for both. Limiting your discussion to the U.S., explain why it touches on both microeconomics and macroeconomics and use specific examples to support that position. I recommend beginning with a distinction between the two fields and then proceeding.

Answer 1

Answer

• Microeconomics studies individuals and business decisions, while macroeconomics analyzes the decisions made by countries and governments.
• Microeconomics focuses on supply and demand, and other forces that determine price levels, making it a bottom-up approach. Macroeconomics takes a top-down approach and looks at the economy as a whole, trying to determine its course and nature.

COVID-19 virus has implications and impacts both micro and macro economic related variables. The impact on the economy as a whole is the reason that this virus can be related to macro-economics. And this virus' impact on individual businesses and households is the reason why it can be associated with Micro-economics.

As far as U.S. is concerned, there are specific examples which show the macro economic and micro economic impacts.

"In four weeks, 22 million Americans have filed for unemployment benefits". This is an example of macro economic impact as the Unemployment (a macro economic issue) has been talked about as to how it has increased due to the spread of Corona Virus.

At micro economic level, for "an isolated individual in U.S.", not working means not producing and not consuming. Confinement leads to a degraded version of work, and often to the complete cessation of production. In simple words, since an individual is not able to work, this pandemic has also impacted at the micro level.