Macroeconomics involves the economic issues of:

Question

BlackTom AI · Accepted Answer

Question restatement: The prompt asks about the scope of macroeconomics and which issues it involves, given four options.
Option a: 'how to generate full employment, price stability and maintain long-term economic growth.' This is a classic macroeconomic focus. It deals with aggregate outcomes of the whole economy, such as unemployment, inflation (price stability), and sustainable growth over time. This aligns with macroeconomic concerns about overall economic performance, not individual markets.
Option b: 'how the economy should organise resources within a particular industry.' This statement touches on resource allocation within a sector, which is more characteristic of microeconomics or sector-specific analysis rather than the economy as a whole. It focuses on internal structure of an industry rather than aggregates like unemployment or inflation.
Option c: 'how firms choose the prices they should charge for their products.' This is a typical microeconomic topic, focusing on individual firm behavior, market pricing, and demand-supply mechanics at the level of a single market, not the macro view of the entire economy.
Option d: 'profit maximisation' is a fundamental microeconomic objective for individual firms. While profits influence macro trends, the phrase itself targets firm-level behavior, not macroeconomic aggregates such as unemployment or inflation.
Synthesis: Among the options, only option a captures the broad, economy-wide issues that macroeconomics studies (employment, price level, long-run growth). The other options describe microeconomic concerns about individual markets, firms, or industries rather than the aggregate performance of the economy.
Therefore, option a is the correct macroeconomic focus, while options b, c, and d reflect microeconomic or firm-level topics, which are outside the primary scope of macroeconomics.

MCD2090 Macroeconomics - Trimester 2 - 2025

Macroeconomics involves the economic issues of:

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