Indicate whether each of the following statements applies to microeconomics or macroeconomics: a. U. S. output, adjusted for inflation, grew by 2.2% in 2007. b. The unemployment rate in the United States was 5.0% in April 2008. c. The consumer price index rose by 2.8% in 2007. d. A U. S. software firm discharged 15 workers last month and transferred the work to India. e. An unexpected freeze in central Florida reduced the citrus crop and caused the price of oranges to rise.

What could explain why a decrease in taxes could lead to a less-than-proportionate increase in output? a. as a result of diminishing returns to current consumption, consumers may choose to spread the extra spending over the long term rather than consuming the proceeds of a tax cut all at once. b. consumers may choose to save much of the tax cut in anticipation of having to pay higher taxes in the future. c. a decrease in taxes will necessitate lower government outlays, thus largely offsetting the higher consumption expenditures of households. d. all of the above. e. a and b only.