Which question belongs primarily to macroeconomics rather than microeconomics?
Correct answer: A. Why did the national unemployment rate rise?
- A. Why did the national unemployment rate rise?
- B. Why did one firm's sales decline?
- C. How does one buyer choose between goods?
- D. How does one market set its price?
Explanation
Macroeconomics studies economy-wide outcomes such as national unemployment. The other options concern individual consumers, firms, or markets, which are mainly subjects of microeconomics.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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