Question

Difference between microeconomic and macroeconomics (5points)

Answer 1

Answer:

1.Microeconomics studies individuals and business decisions, while macroeconomics analyzes the decisions made by countries and governments.

2.Microeconomics focuses on supply and demand, and other forces that determine price levels, making it a bottom-up approach.

3.Macroeconomics takes a top-down approach and looks at the economy as a whole, trying to determine its course and nature.

4.Investors can use microeconomics in their investment decisions, while macroeconomics is an analytical tool mainly used to craft economic and fiscal policy.

Explanation:

hope it helps plz mark it as brainlist

Answer 2

Answer:

• Micro-Economics is the study of particular markets, and segments of the economy. It looks at issues such as consumer behaviour, individual labour markets, and the theory of firms.
• Macro-Economics is the study of the whole economy. It looks at ‘aggregate’ variables, such as aggregate demand, national output and inflation.

Micro-Economics involves

• Supply and demand in individual markets.
• Individual consumer behaviour. e.g. Consumer choice theory
• Individual labour markets – e.g. demand for labour, wage determination.
• Externalities arising from production and consumption. e.g. Externalities

Macro-Economics involves

• Monetary / fiscal policy. e.g. what effect does interest rates have on the whole economy?
• Reasons for inflation and unemployment.
• Economic growth
• International trade and globalisation
• Reasons for differences in living standards and economic growth between countries.
• Government borrowing.

Hope it helps you!!!!

Mark it as Brainliest Answer!!!!