how macroeconomics is different from microeconomics.

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Explain briefly how macroeconomics is different from microeconomics. Please give examples.

What is economics? Before we start to learn about economics, we have to understand that what is the different between macroeconomics and microeconomics. Macroeconomics and microeconomics are the main branches of economics. (Karl E. Case, Ray C. Fair and Sharon M. Oster (2012): Principles of Economics, 10th ed. Global Edition, Chapter 1). And, I will describe that with examples. Microeconomics seems likes the “trees”. It studies and focuses on one unit at the same time, like the firm, the industry and the household. Nevertheless, macroeconomics seems like the “forest”. It is because it studies and analyses the whole economics, the sum of these.

First of all, Microeconomics examines the functioning of individual industries and the behavior of individual decision – making units, typically firms and households.( Karl E. Case, Ray C. Fair and Sharon M. Oster (2012): Principles of Economics, 10th ed. Global Edition, Chapter 1) It also analyses about the individual producers – that is how to allocate limited resources in the production of various commodities to make the maximum profits. Furthermore, microeconomics studies how households and firms make choices, how they interact on the market and how the government tried to influence their choice. Microeconomics concerned about people's decisions and behaviors, that how to affect the supply and demand by goods and services. For example, who is responsible for determining prices and also how to determine the supply and demand by goods and services. Microeconomics would be more focus on examine one aspect of the economic behavior. Nevertheless, it will neglect the interaction with the rest of the economy in order. It is for keep the simplicity of the analysis. In my opinion, i think the important thing in microeconomics, that is microeconomics always ignore other problems during analysis the individual research. When microeconomics analysis neglects some of these indirect effects, it would be “partial’ rather than “general’ analysis.”Partial" equals the microeconomics analysis; "general" equals the macroeconomics. That also is the main different between microeconomics and macroeconomics. And, according to the principle of microeconomics which is microeconomics focus on detailed understanding of particular markets. So, many interactions with other markets are suppressed. On the other hand, macroeconomics looks at the economy as a whole and examines the economic behavior of aggregates – income, employment, output and so on – on a national scale. (Karl E. Case, Ray C. Fair and Sharon M. Oster (2012): Principles of Economics, 10th ed. Global Edition, Chapter 1) Also, macroeconomics studies the interaction of different parts of the economy. Macroeconomics analysis is based on production, income, price level and unemployment throughout the economic behavior. Macroeconomics studies the economy as a whole, including some problem, such as inflation, unemployment and economic growth. And, some macroeconomics concepts like gross domestic product, aggregate price level and unemployment rate always use for analysis about macroeconomics. Macroeconomics will explain why the economy will have an economic recession and unemployment. And, macroeconomics will talk about why some economies grow much faster than other economies in the long period. Also, macroeconomics involved in policy issues, such as government intervention can reduce the severity of the recession. Generally, macroeconomics focuses on households, firms (which together compose the private sector), the government (the public sector) and the rest of the world (the international sector). And, government has used some policies to influence the macroeconomy. For example, fiscal policy, monetary policy and growth or supply – side policies. Macroeconomics would not study ‘one’ thing, such as just one product, like a car or a bed. They group...
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