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What is micro and macroeconomic

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What is micro and macroeconomic
  • 1 answers

Yogita Ingle 6 years, 10 months ago

(a) Microeconomics

Microeconomics is the study of economic behavior of individuals, households and firms’ in decision making and allocation of resources.

Micro economics is concerned with:

  • Supply and demand in individual (Textile Market) markets
  • Individual consumer behaviour. e.g. Consumer choice theory
  • Individual producer behavior.
  • Individual labour markets, g. demand for labour wage determination in that individual market

(b) Macroeconomics

Macroeconomics is the branch of economics that deals with the behavior and performance of an economy as a whole.

It is generally the study of central issues like

  • Employment
  • Growth rate of National output
  • GDP
  • Inflation
  • General Price level and stability
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