What is macroeconomics and microeconomics.

Expert Solution

Macroeconomics and microeconomics are the two main branches of economics which are complementary to each other as macroeconomics is used to analyze long scale economic problems while microeconomics deals with short scale economic problems.
Macroeconomics is an important branch of economics as it deals with large scale economic problems of an economy like the productivity of a nation, interest rates, inflation rates within an economy etc.
Microeconomicsis a branch of economics which deals with various individual or firm's decisions and how they interact with each other.
While macroeconomics studies the behaviour, structure and changes of an entire economy, microeconomics studies the behaviour, structure, and various characteristics of individuals and firms residing within an economy.
Example of macroeconomics :- inflation rates, aggregate demand, money supply are the concerns of an economy as a whole. Hence they come under macroeconomics.
Examples of microeconomics :- Resource allocation, purchase of household items, output production are either related to an individual or the firms. Hence they come under microeconomics.

Rahul Sunny answered 1 year ago

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What is macroeconomics and microeconomics.

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