Macro Economics:

Macro Economics is the study of the behavior of the economy as a whole. It deals with the aggregate economic variables such as national income, unemployment, inflation, etc. The study of how an increase in the corporate income tax rate will affect the natural unemployment rate is an example of macroeconomics.

Explanation:

The corporate income tax rate is one of the important components of fiscal policy. An increase in the corporate income tax rate will affect the economy in several ways. The study of the effects of this increase on the economy as a whole is an example of macroeconomics.

The natural unemployment rate is the rate of unemployment that exists when the economy is in a steady state. It is the rate of unemployment that prevails when the economy is at its potential output level. An increase in the corporate income tax rate will affect the natural unemployment rate in several ways. Some of the effects of an increase in the corporate income tax rate on the natural unemployment rate are:

1. Reduced investment: An increase in the corporate income tax rate will reduce the after-tax profits of the corporations. This will reduce the incentive for the corporations to invest in the economy. The reduction in investment will lead to a decrease in the demand for labor, which will increase the natural unemployment rate.

2. Reduced production: An increase in the corporate income tax rate will increase the cost of production for the corporations. This will reduce the incentive for the corporations to produce goods and services. The reduction in production will lead to a decrease in the demand for labor, which will increase the natural unemployment rate.

3. Reduced competitiveness: An increase in the corporate income tax rate will reduce the competitiveness of the domestic corporations in the international market. This will lead to a decrease in exports and an increase in imports. The decrease in exports will lead to a decrease in the demand for labor, which will increase the natural unemployment rate.

Conclusion:

Thus, the study of the effects of an increase in the corporate income tax rate on the natural unemployment rate is an example of macroeconomics. It helps in understanding the impact of fiscal policy on the economy as a whole.