Question

A study of how increase in the corporate income tax rate, will affect the natura
unemployment rate is an example of :
(a) Macro Economics
(b) Descriptive Economics
(c) Micro Economics
(d) Normative Economics​

Answer 1

Answer:

Government policies and rate of unemployment in an economy are the subject matter of macroeconomics. Hence, how increase in the corporate tax will hit the unemployment rate of an economy should be studied under the sphere of macroeconomics as it deals the economy as a whole.