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MICRO AND MACRO ECONOMICS DISTINGUISH BETWEEN FULL

It helps effective economic policy for the government.It helps in the analysis of national income and GDP.macroeconomics covers the whole economy.

MICRO AND MACRO ECONOMICS DISTINGUISH BETWEEN FULL

Assumption of full employment unrealistic.It is also known as “Income and Employment Theory.”Įxample of Macroeconomics: National income, National OutputĪfter understanding the difference between microeconomics and macroeconomics, let’s discuss the advantages and disadvantages of microeconomics and macroeconomics. Its goal is to determine the economy’s income and employment level and distribution, etc. It aims to determine the prices for goods and services or production, economic welfare, production, consumption, etc.

Microeconomics is the branch of economics that studies the behavior of whole (country, government) units of the economy. Microeconomics is the branch of economics that studies the behavior of individual units of the economy.

It helps to solve economic problems such as poverty, unemployment, inflation, deflation, and more.Įxample of Macroeconomics: National income, National Output What is the Difference Between Microeconomics and Macroeconomicsīelow we have discussed the difference between microeconomics and macroeconomics: S.No.

It studies the overall economic growth of a country.

Macroeconomics studies concepts like economic growth, national income, gross domestic product (GDP). Macroeconomics is the study of making decisions by the nation or aggregate economy. The word ” Macro” has been taken from the “Greek” language. Microeconomics aspects areĮxample of Microeconomics: Individual income, Individual Output It is the bottom-up approach of the economy. Microeconomics is the study of making decisions by the individual and businesses for resources and prices for goods and services.