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Answer

Economics

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1. (40 points) Briefly explain whether each of the following is primarily a microeconomic issue or a macroeconomic issue. a. The effect of higher cigarette taxes on the quantity of cigarettes sold. b. The effect of higher income taxes on the total amount of consumer spending. c. The reasons the economies of East Asian countries grow faster than the economies of sub- Saharan African countries. The reasons for low rates of profit in the airline industry.