Indicate whether each of the following statements applies to microeconomics or macroeconomics: a. the unemployment rate in the united states was 5.1 percent in september 2015: . b. a u. s. software firm discharged 15 workers last month and transferred the work to india: . c. an unexpected freeze in central florida reduced the citrus crop and caused the price of oranges to rise: . d. u. s. output, adjusted for inflation, increased by 2.4 percent in 2014: . e. last week wells fargo bank lowered its interest rate on business loans by one-half of 1 percentage point: . f. the consumer price index rose by 0.2 percent from august 2014 to august 2015: .

a. Macroeconomics

b. microeconomics

c. microeconomics

d. macroeconomics

e. microeconomics

f. macroeconomics

Explanation:

Since Macroeconomic studies the performance of the economy as a whole, The unemployment rate, inflation and consumer price index are part of Macroeconomics studies because they are economic indexes which are aggregated indicators of the whole economy. ‘The unemployment rate in the United States was 5.1 percent in September 2015’ applies to macroeconomics because its referring to the performance of the labour market across all the industries in a national level. ‘ U.S. output, adjusted for inflation, increased by 2.4 percent in 2014’ also applies to macroeconomics because is measures the production of goods and services from every national industry. Finally, ‘consumer price index rose by 0.2 percent from August 2014 to August 2015’ also applies to macroeconomics since it measures the change in prices of all the goods and services in the economy.  

On the other hand, Microeconomics focuses on studying the behaviour of the different economic actors such as individuals and firms, following this, changes in prices of individual goods -such as oranges or a bank loan business interest rates- belong to the Microeconomics branch. Alterations in individual firms’ employment demand also applies to microeconomics, it’s referring to the theory of the firm of the firms which studies the firms decision making to maximize profits.

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