QUESTION IMAGE
Question
which of the following is a good example of macroeconomics?
a. how an increase in the unemployment rate affects a country’s gdp
b. how a new pizza shop affects the current sales of an existing italian restaurant
c. how a specific company maximizes its production and capacity so it can better compete in its industry
d. how a crop blight affects the inventory decisions of a coffee shop
Macroeconomics studies economy - wide phenomena. Option A involves a country’s GDP and unemployment rate, which are macroeconomic variables. Options B, C, D focus on individual firms or specific industries (microeconomic level). So A is a macroeconomics example.
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A. How an increase in the unemployment rate affects a country’s GDP