what is importance of economics and difference betwen micro and macro economics?

Answer 1

Micro economics is like running your household budget... do you have the money to buy something? are you renting and need to pay out each month... or is someone renting from you and paying you each month...

Macro economics is more like the economy of a nation... you are the leader... should you purchase equipment for your factories in your country that you will also have to hire outside help to maintain because it is too far beyond your populations education... or should you buy an old machine that your people can maintain but it produces the product much slower?.. stuff like that...

Companies that have nobody trained in economics often fail in a short time... someone needs to understand not only book keeping ... but the economics behind making a profit and staying viable.

OK.. that's my view on it... but I'm not an economist... so I could be quite wrong!! hahahaahahahaa!

Answer 2

your guy or woman definition of macro economics does not license the government to spend greater money than it has, or is projected to ever have. The Keynesian argument is that the government (Macro) could make money available via manipulating securities. nicely, isn't that what have been given us into the mess we are in now? The Keynesian argument additionally held that the cost of activity grow to be greater often than not a economic phenomenon - and one besides indifferent from the real factors of thrift and the productiveness of capital to which the neoclassical techniques had appropriate it This place added implied that the cost of activity ought to no longer be invoked by way of fact the gentle mechanism for equilibrating meant saving and meant investment. it incredibly is strictly the conundrum we are in now. we attempt to forecast an financial gadget with synthetic costs of activity. Keynes is extensively favourite? LOL. fairly now, after being taken care of to the Keynes approach via Fannie, Freddie, Indy, Barney Frank, Frank Raines, Maxine Waters, Chris Dodd etal, Keynes is invoked as a pejorative incredibly than a valid financial approach. provide up kidding your self.