Which statement is the most accurate description of trade policy?
A) Trade policy has neither microeconomic nor macroeconomic effects.
B) Trade policy has similar microeconomic and macroeconomic effects.
C) The effects of trade policy are more macroeconomic than microeconomic.
D) The effects of trade policy are more microeconomic than macroeconomic.

Question

Quizplus · Accepted Answer

Trade policy has more significant effects on individual industries and individual consumers, which are considered microeconomic effects. The macroeconomic effects of trade policy are comparatively smaller, even though trade can affect important macroeconomic variables, such as inflation rates and national output.

Which Statement Is the Most Accurate Description of Trade Policy