Which of the following is an example of a macroeconomic question?
Choose 1 answer:
(A) Who are the winners and losers from the imposition of a tax on cigarettes?
(B) What is the optimal number of workers for an ice cream shop to employ during the summer months?
(c) How many smartphones should Samsung produce this quarter?
(D) How will a consumer react if their income decreases?
(E) What would be the likely impact of an increase in business taxes on the overall level of inflation in the country?

Question

Which of the following is an example of a macroeconomic question?
Choose 1 answer:
(A) Who are the winners and losers from the imposition of a tax on cigarettes?
(B) What is the optimal number of workers for an ice cream shop to employ during the summer months?
(c) How many smartphones should Samsung produce this quarter?
(D) How will a consumer react if their income decreases?
(E) What would be the likely impact of an increase in business taxes on the overall level of inflation in the country?

Accepted Answer

***E*** ∻Key Concept∻ ⚹Impact of Taxes on Inflation⚹ ∻Explanation∻ ⚹An increase in business taxes can potentially raise production costs, which may lead to higher prices for consumers, thus affecting the overall inflation rate in the economy. This is a macroeconomic question as it deals with economy-wide issues.⚹◊What effect would an increase in business taxes have on the overall level of inflation in the country according to the Phillips Curve model?⍭ Generate me a similar question◊

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