The correct answer is option 2: Macroeconomics
- Microeconomics focuses on individual units like consumers, firms, and specific markets. It does not deal with the general price level of an economy.
- Macroeconomics deals with aggregate economic factors, including inflation, GDP, national income, and the general price level. Since the student is studying the general price level, it falls under macroeconomics.
- Both 1 and 2 is incorrect because the general price level is a macroeconomic concept.
- Normative Economics deals with opinions and value judgments about what the economy should be, rather than analyzing objective economic data. Since the student is studying an objective concept (price level), this is not the right choice
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