Think about the following news items. Which items involve a microeconomic issue and which involve a macroeconomic issue? A. Pay to rise for millions as minimum wage rises B. U.S. economy adds 227,000 jobs in January C. Satisfaction with standard of living greater now than in 2000 D. The U.S. is borrowing less from China, more from everybody else Statement A involves a __ issue. Statement B involves a __ issue. A. macro; micro B. macro; macro C. micro; 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, or industries.<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 factors such as inflation, unemployment, and economic growth.<br /><br />## Step 3<br />Statement A, "Pay to rise for millions as minimum wage rises", is a microeconomic issue. This is because it focuses on the impact of a change in the minimum wage on individual workers or firms. The change in the minimum wage affects the income of individual workers, which is a microeconomic issue.<br /><br />## Step 4<br />Statement B, "U.S. economy adds 227,000 jobs in January", is a macroeconomic issue. This is because it focuses on the overall performance of the economy, specifically the employment rate. The addition of jobs affects the economy as a whole, which is a macroeconomic issue.