How does Microeconomics differ macroeconomics?
What are the key differences between microeconomics and macroeconomics? Could you please elaborate on how each field approaches the study of economic phenomena and the types of issues they analyze?
3 Answers
Microeconomics are specifically about individuals and individual entities. Things such as the classic “supply and demand” curves mostly apply to microeconomics. Other classic examples of microeconomics include price elasticities and such.
Macroeconomics are specifically about the broader overall economy where policy influences are examined. Concepts such as money supply, GDP, consumer price index, producer price index, are all macroeconomics.
Macroeconomics deals basically with world economies, how one country’s currency relates to another etc. Microeconomics is the economics of business. (Obviously you can’t understand one without the other.)
Dec 13, 2024
Microeconomics is the workings of firms and corporations
Macroeconomics is the workings of governments and national economies
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