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    Difference Between Micro Economic and Macro Economic in Briefly?

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    Sunil Patel
    Microeconomics focuses on the decisions of individuals and businesses regarding prices and allocation of resources, taking into account taxes and regulations. Macroeconomics studies economy-wide phenomena like GDP, unemployment, growth, and price levels on a national scale. While they appear different, microeconomics and macroeconomics are interdependent and complementary, as micro-level changes like inflation can impact macroeconomic factors and vice versa.

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    Difference Between Micro Economic and Macro Economic in Briefly?

    Uploaded by

    Sunil Patel
    88 views1 page
    Microeconomics focuses on the decisions of individuals and businesses regarding prices and allocation of resources, taking into account taxes and regulations. Macroeconomics studies economy-wide phenomena like GDP, unemployment, growth, and price levels on a national scale. While they appear different, microeconomics and macroeconomics are interdependent and complementary, as micro-level changes like inflation can impact macroeconomic factors and vice versa.

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    Microeconomics focuses on the decisions of individuals and businesses regarding prices and allocation of resources, taking into account taxes and regulations. Macroeconomics studies economy-wide phenomena like GDP, unemployment, growth, and price levels on a national scale. While they appear different, microeconomics and macroeconomics are interdependent and complementary, as micro-level changes like inflation can impact macroeconomic factors and vice versa.

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    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    88 views1 page

    Difference Between Micro Economic and Macro Economic in Briefly?

    Uploaded by

    Sunil Patel
    Microeconomics focuses on the decisions of individuals and businesses regarding prices and allocation of resources, taking into account taxes and regulations. Macroeconomics studies economy-wide phenomena like GDP, unemployment, growth, and price levels on a national scale. While they appear different, microeconomics and macroeconomics are interdependent and complementary, as micro-level changes like inflation can impact macroeconomic factors and vice versa.

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    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Difference between micro economic and macro

    economic in briefly?
    In brief, the difference is that micro-economists are wrong about specific things, while macro-
    economists are wrong about things in general.

    Macro- and microeconomics, and their wide array of underlying concepts, have been the subject
    of a great deal of writings. The field of study is vast; here is a brief summary of what each
    covers:

    Microeconomics is the study of decisions that people and businesses make regarding the
    allocation of resources and prices of goods and services. This means also taking into account
    taxes and regulations created by governments. Microeconomics focuses on supply and demand
    and other forces that determine price levels for specific companies in specific industry sectors.
    For example, microeconomics would look at how a specific company could maximize it's
    production and capacity so it could lower prices and better compete in its industry.

    Macroeconomics, on the other hand, is the field of economics that studies the behavior of the
    economy as a whole and not just on specific companies, but entire industries and economies.
    This looks at economy-wide phenomena such as Gross National Product (GDP) and how it is
    affected by changes in unemployment, national income, rate of growth, and price levels. For
    example, macroeconomics would look at how an increase/decrease in net exports would affect a
    nation's capital account or how GDP would be affected by unemployment rate.

    While these two studies of economics appear to be different, they are actually interdependent and
    complement one another since there are many overlapping issues between the two fields. For
    example, increased inflation (macro effect) would cause the price of raw materials to increase for
    companies and in turn affect the end product's price charged to the public.

    The bottom line is that microeconomics takes a bottoms-up approach to analyzing the economy
    while macroeconomics takes a top-down approach. Regardless, both micro- and
    macroeconomics provide fundamental tools for any finance professional and should be studied
    together in order to fully understand how companies operate and earn revenues and thus, how an
    entire economy is managed and sustained. x

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