A study of how an increase in the corporate income tax rate will affect the national unemployment rate is an example of:

Macro economics

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Descriptive economics

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Micro economics

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Normative economics

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Solution

The correct option is B Macro economics
Macroeconomics deals with all the issues affecting the national economy.

For example, an increase in the direct tax such as corporate income tax will increase the cost of the corporate sector.
Thus, in order to compensate their costs, one of the measure may be to lessen the employees which will further affect the unemployment in the economy.

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Similar questions

Q. A study of how increase in the corporate income tax rate will affect the national unemployment rate is an example of ____________.

State the following statements are true or false.
1) Macro-Economics is known as income analysis.
2) Increase in national income is a Micro- Economic goal.
3) Macro-Economic adopts lumping method.
4) Study of price determination is a subject matter of Macro-Economics.
5) Micro-Economics deals with the study of aggregates.
6) National output is an example of macro variable.

Q. Other things remaining the same, an increase in the tax rate on corporate profits will ____________.

Other things remaining the same, an increase in the tax rate on corporate profits will

Q. As part of the Taxation Reforms in 1991, Corporate Income Tax Rates were reduced for _____________.

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