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Which of the following is a macroeconomic question? A
Which of the following is a macroeconomic question?
A. How can a firm maximize profits, given the state of the economy?
B. What is the impact of competition on the profits of a business?
C. What factors determine the wage rate in an industry?
D. How does a family allocate its income among various available goods and services
E. How can economic policy fight inflation?
Expert Solution
The correct option is E. How can economic policy fight inflation?.
Macroeconomic questions are those that affect the entire economy of a country and not just a part of it. Economic policies that can control inflation will impact the entire country by bringing inflation down in all regions. Such a policy is not confined to any one sector of the economy.
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