Question

In: Economics

a. Because of the COVID-19 pandemic, the unemployment rate increased from 5.8% to 13.2% Is this macroeconomics or microeconomics?


 a. Because of the COVID-19 pandemic, the unemployment rate increased from 5.8% to 13.2% Is this macroeconomics or microeconomics? 

 b. Restaurant owners have additional costs because of government regulations about cleaning and social distancing. Is this macroeconomics or microeconomics? 

Solutions

Expert Solution

a. Macroeconomics
reason: Macroeconomics studies the economy as a whole and investigates the large scale issues that concern the economy like inflation, employment, money supply, etc. Thus, unemploymet rate in the economy is a macroeconomic issue.

b. Microeconomics.
reason: Microeconomics slices the economy and studies the individual decisions made by small units in the economy like individuals and firms; and how the economic factors influence these decisions. Thus, costs of the restaurant due to economicfactors like government regulation is a metter of microeconomics.


Related Solutions

Because of the COVID-19 pandemic recession the unemployment rate spiked to more than 15% (the highest...
Because of the COVID-19 pandemic recession the unemployment rate spiked to more than 15% (the highest level since the Great Depression of the 1930s) and has slowly declined to a 7.9% in September. In response, the Federal Reserve has taken increased the money supply by more than 40% between February and September. This effort was made to prevent a financial crisis and lower interest rates. The inflation rate fell from 2.3% before the recession to 1.4% in September. Given the...
Has the reduction of mobility due to the COVID-19 pandemic increased or reduced the cost of...
Has the reduction of mobility due to the COVID-19 pandemic increased or reduced the cost of living? According to The New Geography of Jobs, Americans have historically been mobile, continually seeking new opportunities to improve their lives. The COVID-19 pandemic has caused people to remain indoors, and even some States have prevented unnecessary movement of people from one place to another. It is a huge change for many Americans who depend on constant mobility for their economic survival. As such,...
An outcome of the covid-19 pandemic has been an increase in unemployment. If the inflation gap...
An outcome of the covid-19 pandemic has been an increase in unemployment. If the inflation gap was zero when the first unemployment numbers were announced, and assuming no change in r* or the natural rate of unemployment, the response of the federal reserve to the unemployment numbers per the taylor rule would be which of the following? A. decrease in the fed funds rate B. increase in the fed funds rate C. to leave the fed funds rate unchanged
Macroeconomics Case study COVID-19 impact Look at the Four macroeconomics policies i. Economic growth ii. Unemployment...
Macroeconomics Case study COVID-19 impact Look at the Four macroeconomics policies i. Economic growth ii. Unemployment iii. Inflation iiii. Balance of payment How has the Coronavirus – COVID 19 affected each of these policies in Africa? Illustrate with suitable examples
The spread of COVID-19 has prevented many people from doing economic activities. It has increased unemployment...
The spread of COVID-19 has prevented many people from doing economic activities. It has increased unemployment and reduced consumption. Due to reduced consumption, many companies ended up bankrupt. 1) Draw a diagram to illustrate the state of the economy described above. Be sure to show aggregate demand, short-run aggregate supply, and long-run aggregate supply. What happens to the output and price level in the short run? 2) The government now starts to provide enormous financial support to prevent further corporate...
Describe macroeconomics today and COVID-19.
Describe macroeconomics today and COVID-19.
From your own experience, how are the COVID-19 pandemic and the policies to combat the COVID-19...
From your own experience, how are the COVID-19 pandemic and the policies to combat the COVID-19 pandemic affecting the environment and the economy?
List the types of unemployment that can exist in a society. During the COVID-19 pandemic what...
List the types of unemployment that can exist in a society. During the COVID-19 pandemic what type of unemployment do we expect to be prevalent? 150 words minimum
COVID-19 pandemic brings great effect to the worldwide economy. Mention and explain 4 microeconomics and 4...
COVID-19 pandemic brings great effect to the worldwide economy. Mention and explain 4 microeconomics and 4 macroeconomics consequences of the economic phenomenon that happens amid COVID-19 pandemic!
Summarize the COVID- 19 pandemic
Summarize the COVID- 19 pandemic
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT