Which of the following is a macroeconomic topic?
A) The federal government's decision to spend more on environmental protection
B) The county government's decision to increase the sales tax for your county
C) Why did production and jobs expand rapidly in 2004?
D) General Motors decides what prices to set for their new models.
E) The effect of floods in the growing areas on the price and quantity of wheat.

Question

Quizplus · Accepted Answer

The expansion of production and jobs in a certain year is a topic that deals with the overall performance of the economy and is therefore a macroeconomic topic.

Answer: A and E are also macroeconomic topics, as they deal with government spending and the effects of natural disasters on the economy respectively.

Answer: B and D are microeconomic topics as they deal with the decisions of specific government and business entities, rather than the overall performance of the economy.

Which of the Following Is a Macroeconomic Topic