The Tax Cuts and Jobs Act of 2017 is an example of which type of economics?

The Tax Cuts and Jobs Act of 2017 is primarily associated with macroeconomics because it involves large-scale economic policies that affect the economy as a whole. Macroeconomics studies broad factors that influence changes in the overall economy, such as national income, inflation, unemployment rates, and fiscal policies. The act itself aimed to stimulate economic growth through tax reductions and was intended to affect aggregate demand and supply. It represents a shift in government policy related to taxation and public spending, which are key components of macroeconomic analysis.

Microeconomics, on the other hand, focuses on individual economic agents, such as households and businesses, and their interactions in specific markets. Cognitive economics and Austrian economics, while important subfields, do not directly address the comprehensive economic implications of a significant policy change like the Tax Cuts and Jobs Act in the way that macroeconomics does. Therefore, recognizing the act as a macroeconomic issue highlights its implications on the national economy rather than localized or theoretical economic models.