![]() Macroeconomics studies the economy as a whole by using lumping method. Macroeconomics is an economics branch that shows a large picture. It is concerned with the supply of goods and services, which defines the economy's price level. Microeconomics studies each unit in detail by using slicing method. The study of choices made by individuals and businesses about the resource's allocation and prices of goods and services is known as Microeconomics. Macroeconomics is concerned with the behaviour of macro variables such a general price level, employment in the country, national income total savings and investments. Microeconomics deals with the behaviour of micro variables such as individual demand, wages in a particular industry, prices of a particular products, etc. ![]() For instance, Macroeconomics analysis can be done in respect of total employment by considering the aggregation of all the sectors of the economy. Macroeconomics is concerned with aggregation that relates to the whole economy and not of a particular industry. Microeconomics deals with aggregates of a particular industry (such as cement industry or textile industry) with regard to output, demand, price, employment, etc., by taking into consideration the aggregation of various firms belonging to that industry. In Macroeconomics, everything depends on every things else. Macroeconomics analysis is based on General equilibrium analysis. Micro economics analysis is based on partial equilibrium analysis. Macroeconomics deals with allocation of resources in the economy as a whole. Micro economics is concerned with the allocation of resources for the production of particular goods. Macro economics is concerned with the economic behaviour of aggregates in the economy, such as general price level, total production output, national income, etc. Micro economics deals with the economic behaviour of various economic units in the economy, such as particular firms, particular households, prices of individual products, wages in particular industry, etc.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |