Distinguish between micro economics and macro economics.
Answers
Answer:
Microeconomics studies individuals and business decisions, while macroeconomics analyzes the decisions made by countries and governments. Microeconomics focuses on supply and demand, and other forces that determine price levels, making it a bottom-up approach. ok va anna please like and make me brilliant please
Answer!!
→ Microeconomics is the study of individual economic units whereas macroeconomics is the study of economics as a whole.
→ There is a limited degree of aggregation as microeconomics deals with individual units. There is a vast degree of aggregation as macroeconomics deals with the economy as a whole.
→ Microeconomics deals with problems of allocation of resources and related policies. Macroeconomics deals with problems like the determination of the level of income and employment.
→ The main instruments to study microeconomics are demand and supply whereas the main instruments to study macroeconomics are aggregate demand and aggregate supply.
→ Price is the determinant to solve problems at the micro level. Income is the determinant to solve problems at the macro level.