Question

1) Classify each of the following as being either primarily microeconomics or macroeconomics: a. How quickly demand reacts to the latest Apple advertising campaign. b. How the national unemployment rate will be affected by interest rate cuts. c. The price of gasoline in Denver d. An auto manufacturer decides to lay off 1,000 workers because of slow sales due to safety concerns in its latest models.

Answer 1

a.- microeconomics

b.- macroeconomics

c.- microeconomics

d.- microeconomics

Step-by-step explanation:

a.- is the campaign of a business it will have impact on that market.

b - this will impact the whole economy as the interest rate determinates projects profitability and unemployment change the labor supply, increasing or decreasing the labor cost

c.- is the price of a single product in a given city It don't impact the whole economy

d.- this is a decision for a given firm. it is not based on a fact from the economy it is being done based on internal decisions.