Question

Which of the following would be a topic of study in macroeconomics​? A. How the Smith family budgets its income. B. How many pairs of shoes Melissa buys. C. The price of pizza in New York City. D. The output of the United States.

Answer 1

Answer:

D. The output of the United States.

Explanation:

Macroeconomics is a branch of economics that deals with aggregate economy as a whole. The focus of macroeconomics is primarily around  large economics issues such as inflation,Gross Domestic Product (GDP), foreign exchange, unemployment, e.t.c. On the other hand, microeconomics deals with economic decision making of individual and firms. Issue likes production, pricing and consumer budget are the focus.

Now with the question, Option A is wrong to be classified as macroeconomics issues because it points at family budgets which is not an issue of aggregate economy. Family budget is purely an issue of microeconomics.

Option B is also wrong to be in the context of macroeconomics. Deciding how many pairs of shoes to buy is entirely an individual economic issue.

Option C is wrong as well because it deals with demand and supply related issue of price, which is an economic issue for firms, and not aggregate economy.

Option D is correct as a topic of macroeconomics because it is related to the aggregate economic issues of national output of the economy of United States.  Topics like output of the United States  will be discussed within the context of Gross Domestic Product (GDP), which is a macroeconomic issue.