What is meant by microeconomics and macroeconomics?
Answers
Microeconomics and macroeconomics both are considered the pillars of economics study.
Microeconomics is the study of economics at an individual, group or company level. It looks at issues such as consumer behavior, individual labor markets, and the theory of firms.
Microeconomics is concerned with the Supply and demand in individual markets , Individual consumer behavior, Individual labor markets – e.g. demand for labor, wage determination , Externalities arising from production and consumption.
Macro economics is the study of the whole economy. It looks at ‘aggregate’ variables, such as aggregate demand, national output and inflation.
Macroeconomics talks about Monetary / fiscal policy, inflation and unemployment, Economic growth , International trade and globalisation , living standards and economic growth between countries, Government borrowing etc.
Answer:
Microeconomics and Macroeconomics.
Microeconomics deals with economic issues or economic problems related to microeconomic units like a household, a firm or an industry. These issues and problems are studied and addressed largely with a view to maximising individual welfare. Macroeconomics deals with economic issues or economic problems at the level of economy as a whole. These issues or problems are studied and addressed keeping in mind the goals of social welfare or collective welfare.