Macroeconomics vs Microeconomics
Macroeconomics is a particular branch of economics that examines the behaviour and performance of an economy as a whole.
Looking at a country’s wider economic picture, it focuses on the aggregate changes in an economy, such as unemployment, growth rate, GDP, inflation and more.
As a field of study, it attempts to measure how well an economy is performing, understand what forces drive it, and how its performance can be improved. Researchers will look at two main areas: long-term economic growth and performance in shorter-term business cycles.
What is Microeconomics, definition and example ?
The opposite of macroeconomics is microeconomics - a branch of economics which examines the financial decision-making process of individuals, households and businesses.
Generally, it applies to markets of goods and services, dealing with individual and economic issues, including: what buying habits people have, what factors influence their choices, and how their decisions impact the goods markets in terms of price, supply and demand. Essentially, it provides a more comprehensive understanding of market performance compared to macroeconomics.
Microeconomics can help explain a whole range of financial queries we may have, including why some goods and services are valued higher than others, and how we as individuals will respond to different prices.
Comments
Post a Comment