can micro economic be treated as an universal analysis?
Answers
Explanation:
The microeconomic theory taught in economics principles classes is partial equilibrium analysis, which looks at a single market. The equilibrium price and quantity in the market are determined by the intersection of the demand and supply curves in that market
When the price of a product you want to buy goes up, it affects you. But why does the price go up? Is demand greater than supply? Does the cost go up because of the raw materials needed to make it? Or, is it a war in an unknown country that affects the price? To answer these questions, we need to turn to macroeconomics.
KEY TAKEAWAYS
Macroeconomics is the branch of economics that studies the economy as a whole.
Macroeconomics focuses on three things: National output, unemployment, and inflation.
Governments can use macroeconomic policy including monetary and fiscal policy to stabilize the economy.1
Central banks use monetary policy to increase or decrease the money supply, and use fiscal policy to adjust government spending.2
What Is Macroeconomics?
Macroeconomics is the study of the behavior of the economy as a whole. This is different from microeconomics, which concentrates more on individuals and how they make economic decisions. While microeconomics looks at single factors that affect individual decisions,