Which of the following is NOT a typical question addressed by macroeconomics?

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BlackTom AI · Accepted Answer

The question asks which option is NOT a typical macroeconomics question, so we will evaluate each choice in terms of whether it fits macroeconomics (the study of the economy as a whole) or microeconomics (the study of individual markets, like a single product).

Option a: 'What are the causes of recession in the economy?' This is a classic macroeconomics topic because recessions involve aggregate economic performance, overall output, unemployment, and broad economic policy. Discussing causes of recession requires looking at total demand, fiscal and monetary policy, and other economy-wide factors.

Option b: 'How do changes in the price of a single product affect consumer choice?' This question focuses on the demand for a specific good, the substitution and income effects for that product, and individual consumer behavior, which are microeconomic concerns. It does not address the economy-wide aggregates.

Option c: 'How do interest rates affect the overall economy?' Here we are examining a macro level channel: how monetary policy (interest rates) influences aggregate variables like inflation, unemployment, and GDP through the economy as a whole. This is squarely macroeconomic.

Option d: 'What is the effect of unemployment on our living standards?' This question connects unemployment to overall living standards, which ties directly to aggregate economic outcomes and is a staple macroeconomic topic.

In summary, option b is focused on the behavior of individuals regarding a single product, which is microeconomics, whereas options a, c, and d address economy-wide phenomena that macroeconomics examines. The reasoning highlights the distinction between micro and macro scopes and explains why the single-product price change question does not belong to macroeconomics.

Which of the following is NOT a typical question addressed by macroeconomics?

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