Identify Whether the Following Issues Are Macroeconomic or Microeconomic and Explain

question 106

Essay

Identify whether the following issues are macroeconomic or microeconomic and explain why you categorized them in that way.
(A)The growth rate of real GDP
(B)A government policy that guarantees a minimum price of agricultural goods
(C)A tax on restaurant meals
(D)A government policy to affect the increase in the overall price level

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Definitions:

Cause and Effect Relationships

The principle that every effect has a specific and predictable cause, commonly applied in scientific and logical analysis.

Residual Income

The income that remains after subtracting all requisite costs of capital from operating income, often used to assess divisional or project performance.

Operating Expenses

Operating expenses are the costs associated with running a business’s core operations on a day-to-day basis, excluding the cost of goods sold.

Minimum Required Rate of Return

The minimum return on an investment that is deemed acceptable, based on the risk tolerance of an investor or a company.