For each of the following questions identify whether the question is more appropriate for the study of microeconomics or macroeconomics.

a. What will happen to the wages in our community if Corporations X, an employer of 1,000 people ( that is 40% of our workforce) decides to relocate its plant to a different state?

b. What will happen to the level of overall economic production in our economy if the federal government continues to run record levels of government deficit?

c. If the government engages in monetary policy and increases the money supply, what will happen to the interest rate in our economy?

d. How has the recent increase in the price of a barrel of oil affected the prices of bicycles, cars and airplane fares?

e. What will the effect of recent tropical storms be on the price of bananas?

2. Suppose that people anticipate an economic recession and ddecide to increase their rate of saving so they are better prepared financially for the recession. Explain why this response might actually make the recession worse