list down the main tools of micro economics and macro economics analysis?

Question

i am a student of class XII th arts, and having difficulty in finding appropriate answer in short form to learn and understand.
i would be very greatful for your help regarding this, thanking you all in anticipation. kind regards.

Answer 1

Depends upon which school of economics you are looking at, but most modern economics comes from the Marginalists.

So, marginal analysis will be a vital tool for economic analysis. This tool is geared more to microeconomics and looking at a firm, but also can be somewhat useful in macroeconomics.

A tool that would be pretty important to macroeconomics would be statistical analysis. This tool allows an economist to look for trends in economic data in order to make forecasts about how the economy will function in the future. It would also be useful to a firm.

The supply and demand curve is a very useful tool, as it is used to explain many things. It is used in both micro and macro.

These are the main tools that I use. While there are other tools and concepts that are important such as indifference curves and the concept of diminishig marginal utility, these tools are the basis for modern economics and are the most useful.

Hope this helps.