Question

1) What Macro and Micro have in common, and how differ they are?

2) What are the key economics topics covered by Macro and Micro (three topics for each).

2) Is it possible for any country to have a strong Macro and a weak Micro, or otherwise? If "yes", give the example, if "no", explain why.

Answer 1

1) Macro economics analyzes the micro economics from a deeper perspective.

Micro:

• It anaylze individual income of people in the society.
• It focus more on labor demand and supply of a market.
• Households / Firm owners are the decision makers.

Macro:

• It anaylze national income of people in the society.
• It focus more on unemployment, inflation rate of the whole income.
• Policy makers / government are the decision makers.

2) Topics covered in Micro:

• Supply, Demand, Elasticity of supply and elasticity of demand
• Consumer and Producer surplus
• Total Utility and marginal utility

Topics covered in Macro:

• National Income
• Inflation
• International trade and Gloablization

3) I think it is not possible to have strong macro and weak micro or vice versa as these are related to each other. Strong micro lead to strong macro because aggregate performance of individual firms will raise growth of overall economy. Profit generation by small firms leads to rise in labor hiring which will reduce unemployment rate. Larger amount of goods produced by small firms will help us in exporting domestic goods to other nations which will improve international trade. All these factors will lead to strong macro economy.