Macro and Microeconomics

Macro and Microeconomics - Macro and Microeconomics These...

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Macro and Microeconomics These are two branches or rather methods of exposition of the science of economics. The distinction between them can best be explained by comparing their main features. As the terms suggest, macroeconomics deals with the market on a large-scale and its aggregate problems, while microeconomics concerns markets on a small-scale and individual aspects of the problems. There are six distinct aspects of the two approaches that are shown as in the following table : Microeconomics Macroeconomics (a) Units of the study Individual consumers, producers workers, traders, etc. Aggregate units such as state National or International economy. (b) Activities Optimization and maximization of personal gains and profits. Long term growth, maintenance of high levels of production and employment. (c) Origin Micro activities emerge on the demand side of consumer’s choices. Problems of long- term growth depend upon the supply of productive resources (d) Conditions This approach is
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This note was uploaded on 11/17/2011 for the course EC ec 201 taught by Professor - during the Fall '10 term at Montgomery.

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Macro and Microeconomics - Macro and Microeconomics These...

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