Protection question (1 Viewer)

[bfox]

Would the removal of protection to domestic industries in the past decades be a microeconomic or macroeconomic reform? Some sources are saying macro because it affects the economy as a whole, whereas others say micro because it results in structural change in inefficient industries.

 

[jessi90]

macro

 

[runnable]

Micro. Under Deregulations.

 

[munchiecrunchie]

its definitely micro.

 

[bling05]

Micro.

 

[2162]

Micro. Under Deregulations.

Better way to remember macro is that it affects demand in an economy whereas micro refers to supply. By decreasing protection, we are modifying the supply curve thus making it micro rather than macro; which decreasing regulation will not limit demand, it would rather propel it and thus not be effective reform