Which of the following is a macroeconomic question?

• A. How does a single firm determine the price of its product?
• B. What causes the overall unemployment rate to rise during a recession?
• C. What factors influence an individual's decision to save money?
• D. How does a consumer decide between two competing brands?

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the difference between microeconomics and macroeconomics. Microeconomics focuses on individual agents like consumers, firms, and markets, while macroeconomics looks at the economy as a whole, including aggregate variables such as unemployment, inflation, and GDP.
2. Step 2: Analyze each question to determine its scope. For example, 'How does a single firm determine the price of its product?' is about an individual firm's behavior, which is microeconomic.
3. Step 3: Identify the question that deals with aggregate economic indicators or broad economic phenomena. 'What causes the overall unemployment rate to rise during a recession?' focuses on the entire economy's unemployment rate, which is a macroeconomic issue.
4. Step 4: Recognize that questions about individual decisions, such as saving money or choosing between brands, are microeconomic because they focus on personal or firm-level choices.
5. Step 5: Conclude that the macroeconomic question among the options is the one concerning the overall unemployment rate during a recession, as it deals with aggregate economic outcomes.