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Solution:
Macroeconomics is the branch of economics that studies the behavior and performance of an economy as a whole. It focuses on the aggregate changes in the economy such as inflation, unemployment, economic growth, and monetary and fiscal policies.
Out of the given options, (c) The effect of an increasing inflation rate on living standards of people in India would be considered a topic of study in Macroeconomics because it deals with aggregate changes in the economy.
The other options are topics that would be studied in Microeconomics because they deal with individual markets and firms.
For example, (a) The effect of increase in wages on the profitability of cotton industry deals with the cotton industry while
(b) The effect on steel prices when more steel is imported deals with steel prices.
(d) The effect of an increase in the price of coffee on the quantity of tea consumed deals with coffee and tea consumption.
Correct option is (c)