Define macroeconismics, microeconomics, compare and contrast the areas. What questions do both areas of study ask? In terms of production, prices, income and employment.
Define macroeconismics,
In terms of production,
Microeconomics is a branch of economics that deals with individual factors like decisions made by single buyer or seller in a market. This field of economics study the decision patters of single buyers and sellers and how those decisions have impacts on markets.
Macroeconomics is a branch of economics that deals with macroeconomic variables like national income, employment, inflation, interest rate etc. This field of economics study the whole economy and sees economy on a larger context.
The name of these two branches of economics are self explanatory and tells us the main difference between these two. Microeconomics studies small units of the economy such as individual markets, individual buyers or individual sellers. But macroeconomics as the name suggests studies the total economy and not just individual buyers or sellers. It studies about the overall income in the economy, the inflation rate, employment rate etc.
Step by step
Solved in 2 steps
