A microeconomist would most likely study the effect of a reduction in income tax rates on:
A)total output in the economy.
B)the output of the steel industry.
C)inflation.
D)unemployment.

Question

A microeconomist would most likely study the effect of a reduction in income tax rates on:
A)​total output in the economy.
B)​the output of the steel industry.
C)​inflation.
D)​unemployment.

Quizplus · Accepted Answer

Microeconomists focus on the effects of specific policies on individual sectors or markets, such as the impact of tax changes on the output of the steel industry, rather than on the economy as a whole or on macroeconomic indicators like total output, inflation, or unemployment.

A Microeconomist Would Most Likely Study the Effect of a Reduction