Name: Introduction to Macroeconomics
Uploaded: 2019-07-19
Duration: 6 min 57 s
Description: Learn about the basics of macroeconomics, including key concepts like GDP, inflation, and unemployment, and how they impact our daily lives and the economy.

Question

What is the difference between microeconomics and macroeconomics

?

Accepted Answer

Microeconomics Basis Macroeconomics

Microeconomics studies the behaviour of individual economic units of an economy, like households, firms, individual consumers and producers etc.

Degree of Aggregation

Macroeconomics is that part of economic theory which studies the economy as a whole, such as national income, aggregate employment, general price level, aggregate consumption, aggregate investment, etc.

The objective of microeconomics is to study the principles, problems, policies concerning the optimum utilisation of resources.

Objective

Its objective is to study the problems, policies and principles relating to the full employment of resources.

In this, laws are based on the assumption of other things being constant (ceteris paribus). It means that we show the effect of only one change by keeping other factors constant. This method of study is called partial equilibrium analysis.

Method of Study

In this, laws are formulated so that mutual interdependence between different economic variables such as total savings, total employment could be studied easily. This method of study is called general equilibrium analysis.

Its main instruments are demand and supply.

Instrument

Its main instruments are aggregate demand and aggregate supply.

It is also called 'Price Theory'.

Alternative
Name

It is also called the 'Income Theory' or Employment Theory'.

What is the difference between microeconomics and macroeconomics $?$

Important Questions on Introduction

Learn and Prepare for any exam you want !

What is the difference between microeconomics and macroeconomics?

Important Questions on Introduction

Learn and Prepare for any exam you want !

What is the difference between microeconomics and macroeconomics $?$