Match the following:

1-C, 2-A, 3-B, 4-D

The correct answer is Option :1-C, 2-A, 3-B, 4-D

1. Aggregate supply -                   C. Macroeconomic variable
2. Profits of an individual firm -      A. Microeconomic variable
3. Capitalist economy -                 B. Market forces of demand and supply
4. Great Depression -                    D. 1929

Macroeconomics deals with society as a whole and thus involves variables like aggregate demand and supply, employment, etc. Whereas, microeconomics deals with smaller units and thus, involves variables like individual price, quantity etc.

The profits of an individual firm pertain to the financial performance of that particular firm. This is a microeconomic variable because it focuses on individual entities within the economy rather than the economy as a whole.

In a capitalist economy, the market forces of demand and supply play an important role in influencing the economic activities of the country.

The great depression was witnessed in the year 1929 in which a huge fall in the output and employment levels was seen in Europe and North America.