Question : The study of inflation, economic growth, and fiscal policy falls under:
Option 1: Microeconomics
Option 2: Macroeconomics
Option 3: Behavioral economics
Option 4: Development economics
Correct Answer: Macroeconomics
Solution : The correct answer is (b) Macroeconomics.
Macroeconomics focuses on the behavior and performance of an entire economy. It examines aggregate variables such as the overall level of prices (inflation), the rate of economic growth, and the impact of government policies on the overall economy (including fiscal policy). Macroeconomics analyzes the interrelationships between different sectors of the economy, such as consumption, investment, government spending, and international trade. It seeks to understand the factors that influence the overall level of economic activity, employment, inflation, and the stability of the economy as a whole.
