The macroeconomist would most likely study:
A) the effects of changing beer prices on the market for pretzels.
B) the effects of an increased income tax on a typical household's purchase of goods.
C) the effects of a reduction in income tax rates on the nation's total output.
D) how consumers in Gary,Indiana,respond to lower gasoline prices.

Question

Quizplus · Accepted Answer

Macroeconomists study the economy as a whole, including topics such as total output (GDP), inflation, and unemployment. Therefore, the effects of a reduction in income tax rates on the nation's total output would be a topic studied by a macroeconomist. Choices A, B, and D are all more focused on specific markets or households and would be better studied by microeconomists.

The Macroeconomist Would Most Likely Study