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Chapter 1: Q. 1.1 (page 1)

Discuss the difference between microeconomics and macroeconomics.

Short Answer

Expert verified

Microeconomics is the study of the individual.

Macroeconomics is the study of the economy as a whole.

Step by step solution

01

Step 1. Definition of Microeconomics and Macroeconomics.

Microeconomics can be referred to as the study of individuals.

Macroeconomics refers to the study of the economy as a whole.

02

Step 2. Differences.

Microeconomics is the study of decision-making with the aid of using people or with the aid of using firms. It researches the marketplace forces of supply and demand and the way they have an impact on the one-of-a-kind marketplace scenarios. For example - Demand and Supply.

Macroeconomics is the study of the financial system as a whole. It researches the mixture behaviors of a financial system. It is largely a look at the worldwide marketplace and numerous regulations associated with trade. For example - Aggregate Demand and Supply.

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