Question

Explain whether each of the following is an example of a macroeconomic concern or a macroeconomic concern.

a. The
Federal Aviation Administration (FAA) is considering increasing the number of takeoff and landing slots available at Ronald
Reagan Washington National Airport.
b. The president has proposed increasing the marginal tax rate for people whose
annual earnings exceed $275,000 and lowering the marginal tax rate for those who earn less than $275,000.
c. Walmart
announced that it will increase its starting wage for employees to $10 per hour by February 2016.
d. Congress extends the maximum duration for the collection of unemployment benets from 26 weeks to 52 weeks.

Answer 1

A is microeconomic because they are considering the slots of only one airport.

B is macroeconomic because this decision will afect each and every person in the country.

C is microeconomic because it will only affect certain employees in the stores.

D is macroeconomic because this will affect every person that is unemployed at the moment.