An individual worker is laid off because his firm is in financial trouble. Why would this event be of more interest to a microeconomist than to a macroeconomist?
An individual worker is laid off because his firm is in financial trouble. Why would this event be of more interest to a microeconomist than to a macroeconomist?
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter13: Earnings, Productivity, And The Job Market
Section: Chapter Questions
Problem 12CQ
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An individual worker is laid off because his firm is in financial trouble. Why would this event be of more interest to a microeconomist than to a macroeconomist?
Transcribed Image Text:trouble. Wh
There will be lost economic productivity due to the layoff.
Microeconomics is about people and firms, while macroeconomics is about capital.
The event occurs in the private sector and does not involve public policy.
The worker becomes unemployed and unemployment is part of microeconomics.
An event involving just one worker and one firm is a micro-scale event.
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