Question 26

The annual growth rate of an economy

The annual growth rate of an economy is a macroeconomic topic as it reflects the overall economic performance and health of a nation, typically measured by the increase in Gross Domestic Product (GDP).

A) An increase in the price of gasoline

This option represents a microeconomic issue as it focuses on the price change of a specific commodity rather than the broader economic indicators that affect an entire economy. While it can have macroeconomic implications, it is not a macroeconomic topic in itself.

B) The monthly expenditure of a typical urban household on entertainment

This choice pertains to microeconomics because it analyzes individual household spending behaviors. It does not encompass large-scale economic factors or trends that characterize macroeconomic study.

C) The annual growth rate of an economy

This is the correct answer as it directly relates to macroeconomics. The annual growth rate is a key indicator of economic health, reflecting how an economy is performing over time and influencing policies and decisions at a national level.

D) A hike in the wage rate of workers in a textile factory in a state

This option also falls under microeconomics since it deals with wage changes within a specific industry rather than broader economic trends or national indicators. It does not address the economy as a whole.

Conclusion

The annual growth rate of an economy is definitively a macroeconomic topic because it serves as a crucial measure of national economic performance. In contrast, the other options focus on specific sectors or behaviors, failing to encapsulate the larger economic dynamics that define macroeconomics.