explain how microeconomics is different from macroeconomics ?
Answers
Hello !
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.
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Microeconomics :-
♥ Microeconomics is a part of economic theory which studies the behaviour of individual units of an economy .
♥ It's also known as ' Price theory ' .
♥ Demand and supply are the tools .
♥ It aims to determine the price of a commodity or the factors of production .
♥ E.g - Individual income and individual output .
Macroeconomics :-
♥ Macroeconomics is a part of economic theory which studies the behaviour of aggregates of the economy as a whole .
♥ It's also known as ' Income & Employment theory ' .
♥ Aggregate deman and aggregate supply are the tools .
♥ It aims to determine income and employment level of the economy .
♥ E.g - National income and national output .