Think about the following news items. Which items involve a microeconomic issue and which involve a macroeconomic issue? A. Manufacturing production rises for sixth straight month B. Pay to rise for millions as minimum wage rises C. Satisfaction with standard of living greater now than in 2000 D. Will proposed tobacco tax hikes reduct smoking? Statement A involves a __ issue. Statement B involves a __ issue. A. macro; micro B. micro; micro C. micro; macro D. macro; macro

## Step 1<br />The first step in solving this problem is to understand the difference between microeconomics and macroeconomics. Microeconomics focuses on individual units within an economy, such as households and firms, and their interactions. This includes the study of supply and demand, pricing, and production. Macroeconomics, on the other hand, looks at the economy as a whole and focuses on aggregate indicators such as GDP, unemployment rates, and inflation.<br /><br />## Step 2<br />Next, we analyze each statement:<br /><br />### Statement A: "Manufacturing production rises for sixth straight month"<br />This statement is related to the overall production in the economy, which is a topic of macroeconomics. It deals with the aggregate level of production, which is a key indicator of the overall health of an economy.<br /><br />### Statement B: "Pay to rise for millions as minimum wage rises"<br />This statement is related to the labor market, specifically the minimum wage, which falls under the purview of microeconomics. It deals with the individual units within the economy, in this case, the workers and their wages.<br /><br />### Statement C: "Satisfaction with standard of living greater now than in 2000"<br />This statement is related to the overall well-being of the economy, which is a topic of macroeconomics. It deals with the aggregate level of well-being, which is a key indicator of the overall health of an economy.<br /><br />### Statement D: "Will proposed tobacco tax hikes reduce smoking?"<br />This statement is related to the impact of a policy on individual behavior, which is a topic of microeconomics. It deals with the individual units within the economy, in this case, the consumers and their behavior.