Question

9. Give an example to show that microeconomic variables depend upon the level and behaviour of macroeconomic
variables.
to show that macroeconomic variables depend upon the level and behaviour of macroeconomic​

Answer 1

Answer:

Microeconomics is defined as "The study of the economic choices individuals and firms make and of how these choices create markets." Thus the study of microeconomics looks at specific markets individually and in great detail. Thus it will tend to examine micro variables such as the demand specific to a particular market or good. It will not be concerned with the aggregate market demand, or any other aggregate variables that treat the economy as one unit.