Question

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Answer 1

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.

Explanation:

Examples of microeconomics are individual income, the demand of a commodity, supply of a commodity, the output of a firm, etc. since its subject matter microeconomics theory is also called ' price theory.

Examples of macroeconomic factors include economic outputs, unemployment rates, and inflation. These indicators of economic performance are closely monitored by governments, businesses and consumers alike.

Answer 2

Answer:

Economics is divided into two categories: microeconomics and macroeconomics. Microeconomics is the study of individuals and business decisions, while macroeconomics looks at the decisions of countries and governments.

Though these two branches of economics appear different, they are actually interdependent and complement one another. Many overlapping issues exist between the two fields.

•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.

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

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

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