Governing entities use macroeconomics as an analytical tool to draft the economic policies.Īdopts a bottom-up approach focusing on supply and demand and the other aspects that impact the prices.Īdopts a top-down approach studying the entire economy to ascertain its nature and course. Investors use microeconomics to guide their investment decisions Macroeconomics studies the decisions made by nations and governments ![]() Microeconomics makes a study of individuals and business decisions It studies the countrywide global issues like growth, inflation and unemployment. Microeconomics deals with the sum total of economic activity in a nation or the world. It studies the individual market’s behavior for the sake of drawing conclusions on distributing limited resources. Microeconomics deals with the smaller segments of economy namely the individual markets. Macroeconomics focuses on bigger aspects like inflation, employment and aggregate demand. Microeconomics focuses on the characteristics, trends, and changes noticed in individual markets. Macroeconomics analyses how factors like unemployment, national income, and prices of goods affect the economy at large. ![]() Microeconomics analyses what will happen when the buyers make choices and how their choices can impact the supply and demand for resources and consequently the prices of goods. It analyses the aspects that affect the entire economy including GDP. ![]() Macroeconomics is the overall study of the economy. Microeconomics is the study of the behaviour of individual markets and their stakeholders including buyers, sellers and business owners.
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