![]() For example, the water stored in a tank at a point in time and number ofīooks in a library on a particular date are stock variables. Stock VariablesĪ stock variable refers to the quantity measured at any given point of time. These variables are grouped under stock variables and flow variables Macroeconomics uses certain economic aggregates called macroeconomic variables to assess the In general, Microeconomics may depend upon the Macroeconomics in following heads. ⮚ Dependence of Microeconomics on Macroeconomics Determination of economic growth stability and general welfare of the economy.In general, Macroeconomics may depend upon the microeconomics in following heads. Of the other.' ⮚ Dependence of Macroeconomics on Microeconomics ![]() Simply, we know the individual part affects the whole and whole affects theĪccording to Samuelson 'There is really no opposite between micro and macroeconomics, both are absolutely vital, you will be less than half educated if you understand the one while being ignorant Microeconomics is building block for macroeconomics and macroeconomics issues policyįrom microeconomics. Objectives, subject matters, components of equilibrium etc. Interdependence between Microeconomics and MacroeconomicsĮven though there are so many differences between micro and macroeconomics in their scopes, Macroeconomics assumes employment as a variable. Other things same whereas macroeconomics does not assume full employment in the economy. Microeconomics theories are based on the unrealistic assumption like full employment there by keeping The main objective of microeconomics is the optimum allocation of resources whereas the main objectives of macroeconomics are to attain the full employment, economic growth in an economy. Macroeconomics deals with the economic behaviors of the whole economy through general Microeconomics evaluates the individual equilibrium process through partial equilibrium process whereas Macroeconomics deals with the equilibrium between the forces of aggregate demand andĪggregate supply of whole economy. Microeconomics studies the equilibrium between opposite forces of market demand and supply whereas whereas the subject matter of macroeconomics deals with the full employment, general price level, national income, business cycle. ![]() The subject matter of microeconomic deals with the determination of price, consumer's equilibrium, While macroeconomics includes the study of aggregate variables likeĪggregate demand, aggregate supply, national income, national saving, level of employment and ![]() Microeconomics as such as is the study of individual units like individual consumption, price, saving, Microeconomics is the study of small economic variables and macro economics is the study of the aggregate economic variables. Macroeconomics was also derived from the Greek Word 'Makros' meaning large. The term microeconomics was derived from the Greek Word 'Mikros' meaning small. The major difference between Micro and Macroeconomics are explained below. Difference between Microeconomics and Macroeconomics ![]()
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