Which of the following lies primarily within the realm of macroeconomics?

• A. Examining consumer preferences for a particular brand
• B. Studying the hiring decisions of a single firm
• C. Determining the price of a specific product in a local market
• D. Analyzing the impact of monetary policy on national unemployment rates

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the distinction between microeconomics and macroeconomics. Microeconomics focuses on individual agents such as consumers, firms, and specific markets, while macroeconomics looks at the economy as a whole, including aggregate variables like national unemployment, inflation, and GDP.
2. Step 2: Analyze each option to determine whether it deals with individual economic agents or aggregate economic phenomena. For example, examining consumer preferences for a particular brand is microeconomic because it focuses on individual consumer behavior.
3. Step 3: Recognize that studying the hiring decisions of a single firm is microeconomic since it concerns the choices of one firm rather than the economy-wide labor market.
4. Step 4: Understand that determining the price of a specific product in a local market is also microeconomic because it deals with price formation in a particular market segment.
5. Step 5: Identify that analyzing the impact of monetary policy on national unemployment rates is macroeconomic because it involves government policy affecting aggregate employment levels across the entire economy.