Question

23. Which of the following would be considered
a topic of study in Macroeconomics ?
a. The effect of increase in wages on the
profitability of cotton industry
b. The effect on steel prices when more steel
is imported
The effect of an increasing inflation rate on
living standards of people in India.
d. The effect of an increase in the price of
coffee on the quantity of tea consumed
C.

Answer 1

Explanation:

The correct answer is C.

 the effect of an increase in the US inflation rate on the economy.

Hope it's Help you.

Answer 2

The answer to this question is option C, The effect of an increasing inflation rate on the living standards of people in India.

• Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole.
• Here, the effect of an increasing inflation rate is felt by the economy as a whole rather than any individual or a specific industry.
• The effect of an increase in wages on the profitability of the cotton industry is only felt by the people belonging to that specific industry. It is not going to be felt by the economy as a whole.
• The effect on steel prices when more steel is imported is again felt only by a specific part of the economy and not on the economy as a whole.
• The effect of an increase in the price of coffee on the quantity of tea consumed is also only felt by a specific part of the economy and not the economy as a whole.
• Thus, the answer to this question should be option C, the effect of an increasing inflation rate on the living standards of people in India.

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