A macroeconomist would most likely study
A) the effects of changing grape prices on the market for oranges.
B) the effects of an increase in wage rates on a woman's decision to enter the labor force.
C) the effects of a lower income tax rates on the nation's total production of goods and services.
D) the effect of increased union wages on the cost of producing automobiles.

Question

Quizplus · Accepted Answer

Macroeconomics is the branch of economics that deals with the economy as a whole, including issues such as inflation, unemployment, and economic growth. A lower income tax rate can affect the total production of goods and services in a country and is a macroeconomic issue. On the other hand, choices A, B, and D relate to microeconomic issues, which focus on the behavior of individuals and firms in markets for specific goods and services.

A Macroeconomist Would Most Likely Study