Closure of restaurants reduces overall economic output

Steps:

• Identify macroeconomic impacts as effects on the economy as a whole, like GDP, employment, or inflation.
• Analyze the policy: Closing restaurants and cafes halts their operations, reducing production of goods and services.
• Link to GDP: GDP measures total value of output; shutdowns directly cut this value in the hospitality sector.
• Evaluate choices: Select the broadest economy-wide effect, not sector-specific or micro-level changes.

Why B is correct:

• GDP is the total market value of all final goods and services produced; closing restaurants eliminates their output contribution, lowering aggregate GDP per the expenditure approach (GDP = C + I + G + NX).

Why the others are wrong:

• A: This is a microeconomic shift in consumer demand, not a macro impact on total output.
• C: Profit decline affects individual firms, a microeconomic issue, not the whole economy.
• D: Income loss for specific workers is a labor market effect, but macro impacts involve broader unemployment trends.

Final answer: B