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. U.S. economy adds 227,000 jobs in January C. U.S. inflation expectations at highest level since 2015 D. Pay to rise for millions as minimum wage rises Statement A involves a __ issue. Statement B involves a __ issue. A. macro; macro D B. micro; micro C. macro; micro D. micro; macro

## Step 1<br />Microeconomic issues are those that affect individual sectors or groups of the economy. These issues are usually related to the production, distribution, and consumption of goods and services. They focus on the behavior of individual economic agents such as households, firms, and markets.<br /><br />## Step 2<br />Macroeconomic issues, on the other hand, are those that affect the economy as a whole. These issues are related to the overall performance of the economy, including the level of economic activity, the level of employment, the level of inflation, and the level of economic growth.<br /><br />## Step 3<br />Statement A, "Manufacturing production rises for sixth straight month", is a macroeconomic issue because it pertains to the overall level of economic activity in the manufacturing sector. This is a broad measure that affects the economy as a whole.<br /><br />## Step 4<br />Statement B, "U.S. economy adds 227,000 jobs in January", is also a macroeconomic issue. This is because it pertains to the overall level of employment in the economy. The number of jobs added is a broad measure that affects the economy as a whole.