II. Categorize each of the following issues as the subject of either microeconom
ID: 1118238 • Letter: I
Question
II. Categorize each of the following issues as the subject of either microeconomics or macroeconomics or the subject of neither microeconomics nor macroeconomics. Explain your answers briefly. (Hint: do not rewrite the statements, put letters only and give your explanations) (a) An effective union strike in metallurgy brought about higher wages for insiders. (b) A family chooses not to have more than one baby (c) The Central bank increased the rate of growth of the money supply. (d) This year the budget deficit is expected to rise by 5%. (e) A worker decides to work overtime to receive higher income. (f) The price of gasoline increased relative to the price of other energy resources. (g) Government imposes the higher taxes on automobile producers. (h) Due to falling oil prices Russian trade surplus may go down. (i) A student decides to spend more time to study mathematics, rather than economics. Favorable weather conditions will mean a good harvest this year (k) New computer technology brings falling prices and growing sales of computers. (1) Last week "The First City Bank" lowered interest rates on loans to private enterprises (m) Purchases of durable goods fall resulting from increased government price controls on durable goods production (n) A firm will invest in a machine if the expected rate of return is sufficiently high. (o) A cut in federal income taxes is expected to increase consumer spending. (p) A rise in the unemployment rate signals the beginning of the recession in the New York area.Explanation / Answer
(a) Microeconomics
The issue relates to firm's decision making process regarding labor demand and supply.
(b) Neither
Choice of having babies is a non-economic issue, unless secified otherwise.
(c) Macroeconomics
The issue deals with overall economic money growth.
(d) Macroeconomics
The issue deals with overall governmental deficit.
(e) Microeconomics
The issue deals with individual decision making process regarding income.
(f) Microeconomics
The issue deals with individual decision making process regarding allocation of her/his budget.
(g) Microeconomics
The issue deals with firm's decision making process regarding how much to produce.
(h) Macroeconomics
The issue deals with a country's overall economic trade surplus.
(i) Microeconomics
The issue deals with individual decision making process regarding allocation of her/his time to study.
(j) Macroeconomics
The issue deals with economy-wide agricultural production.
NOTE: As per Chegg answering guidelines, first 10 parts are answered.