Question

Explain the microeconomics and macroeconomics in detail?

Answer 1

Answer:

Explanation:

'Microeconomics' deals with the individual units such as individual firm, individual industry, individual commodity etc. It uses slicing method i.e. splits the economy into small units and studies each unit in detail.

'Macroeconomics' deals with the whole economy. It studies the aggregates of quantities such as aggregate demand and supply . It splits the economy inyo big lumps and studies each lump such as population, investment, total output , total supply, etc.

Answer 2

1) Microeconomics is a part of economic theory which studies the behaviour of individual units of an economy .

♥ E.g - Individual income , individual output , price of a commodity , etc .

2) Macroeconomics is a part of economic theory which studies the behaviour of the aggregates of the economy .

♥ E.g - National income , aggregate output , aggregate consumption , etc .