Suppose that the following headlines appeared in a newspaper. Which would most clearly represent a macroeconomic issue?

"Central Bank Raises Interest Rates"

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"Auto Dealership to Cut Prices"

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"Coffee Bean Crop Falls by 10 Percent"

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"United Workers Union to Strike April 15"

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Solution

The correct option is A
"Central Bank Raises Interest Rates"

Macroeconomics is that branch of Economics, which studies economic problems (or economic issues) relating to economy as a whole. Since Central bank is at the center of the entire banking system, this is an example of Macroeconomic variable.

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