what is the difference between macro and micro economics?

Answer 1

microeconomics talks about the elements of the macroeconomy. as my microeconomics lecturer wyn morgan says "all macroeconomic theories should be underpined by microeconomics". the exact elements examined by microeconomics are the firms and how the interact between them it examines how these firms make profits and how the economy works on a more localised individual scale. macroeconomics aggregates the above in order to give an overall picture of th economy. it examines economies in teh context of countries and covers a variety of topics from inflation to balance of payments accounts.

Answer 2

The word macro means 'very large in scale or scope' and micro means small. So the difference between macro and micro economics is when you are looking at the nation's economy, you are referring to macro economics. More factors make the wheels turn in the nation's economy. Conversely, the supply and demand for one product made by one company is micro economics. Not nearly as many factors affect supply and demand for one product as do the nation's economy.

Answer 3

your very own definition of macro economics does not license the government to spend extra money than it has, or is projected to ever have. The Keynesian argument is that the government (Macro) could make money available by making use of 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 fee of pastime became on the whole a economic phenomenon - and one in addition to indifferent from the real components of thrift and the productiveness of capital to which the neoclassical techniques had correct it This place further implied that the fee of pastime would desire to not be invoked because of the fact the comfortable mechanism for equilibrating meant saving and meant investment. it is strictly the conundrum we are in now. we attempt to forecast an economic gadget with man made rates of pastime. Keynes is broadly prevalent? LOL. extremely now, after being taken care of to the Keynes approach by making use of Fannie, Freddie, Indy, Barney Frank, Frank Raines, Maxine Waters, Chris Dodd etal, Keynes is invoked as a pejorative extremely than a sound financial approach. cease kidding your self.

Answer 4

Microeconomics
it studies economic activities of an economic unit,like demand for cars by an individual household, or economic activities of a small group of economic units. Micro economics includes the study of demand theory, production theory, price distribution,factor pricing(or distribution),etc.

Macroeconomics
it studies economic activities related to an economy as a whole. For example, it studies aggregate demand for all goods and services in the economy. It deals with aggregates such as national income, total employment, general price level, inflation, etc.

Answer 5

Microeconomics studies economic behavior at the individual level; whereas, macroeconomics investigates economic issues on an aggregate scale. The particular approach taken strongly influences the set of policies and decisions that are made to promote certain areas of economic activity.

Microeconomics considers the behavior of individual consumers, firms, and industries. One of the goals of microeconomics is to analyze market mechanisms that establish relative prices amongst goods and services, and allocate society's resources amongst their many alternative uses. Microeconomics analyzes market failure (where markets fail to maximize welfare), and describes the theoretical conditions needed for perfect competition. Major fields of study in microeconomics include markets under asymmetric information, choice under uncertainty, and economic applications of game theory.

Macroeconomics deals with aggregate behavior and the study of the sum of individual economic decisions. Macroeconomics can be used to analyze how best to influence national government policy goals—such as economic growth, price stability, full employment, and the attainment of a sustainable balance of payments.

Answer 6

Macroeconomics is the study of the economy as a whole.

Microeconomics is the study of economics at the level of the individual.

Answer 7

Macroeconomics studies national income, inflation, and unemployment in the overall economy. Microeconomics studies costs, prices and profits in a particular market or industry.