In: Economics
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?
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.