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.

Rahul Sunny answered 1 year ago

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Question

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

Solutions

Expert Solution

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