1. The correct option is A: Cyclical unemployment.

Explanation: Cyclical unemployment is the cause of irregular cyclic trends. Cyclical unemployment happens in the recession period when there is no demand for the workforce.

In income, price and wealth effects, the purchasing power is directly influenced due to inflation.

So, cyclical not the consequence of the inflation.

2. The correct option is B. Vertical inequity.

Explanation: Vertical equity is when the high-income earner will pay a higher tax than low- income earner. Whereas, vertical inequity is the opposite in which the low-income earner will pay a higher tax than a high-income earner.

3. The correct option is D. All of the above.

Explanation: The wealth of an individual is directly affected by the inflation rate.

In money illusion, people believe that money has a fixed value with respect to purchasing power irrespective of its real value.

In microeconomics, unemployment is said to have an inverse relationship with inflation.

So, all of the above options are the consequences of inflation in microeconomics.

4. The correct option is A: Marginal tax rate.

Explanation: With the increase in per dollar, the tax rate increases. This is known as the marginal tax rate.