Mention any four differences between microeconomics and macroeconomics.
Answers
Explanation:
The main differences between micro and macro economics
1.Small segment of economy vs whole aggregate economy.
2.Microeconomics works on the principle that markets soon create equilibrium. In macro economics, the economy may be in a state of disequilibrium (boom or recession) for a longer period.
3. There is little debate about the basic principles of micro-economics. Macro economics is more contentious. There are different schools of macro economics offering different explanations (e.g. Keynesian, Monetarist, Austrian, Real Business cycle e.t.c).
4.Macro economics places greater emphasis on empirical data and trying to explain it. Micro economics tends to work from theory first – though this is not always the case.
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 .