Macroeconomics vs. Microeconomics Essay

hese are two branches or rather methods of exposition of the information of economics. The distinction between them can best be explained by canvass their main features. As the terms suggest, macroeconomics deals with the market on a big and its aggregate problems, while microeconomics concerns markets on a small-scale and individual aspects of the problems. on that point are six distinct aspects of the two approaches that are shown as in the following table smalleconomicsMacroeconomics (a) Units of the study Individual consumers, producers workers, traders, etc. Aggregate units such(prenominal) as state National or International economy. (b) Activities Optimization and maximization of personal gains and profits. Long term growth, maintenance of high levels of production and employment. (c) line Micro activities emerge on the demand side of consumers choices. Problems of long-term growth depend upon the supply of productive resources (d) ConditionsThis approach is functional on a lower floor static conditions and small time intervals. This approach is functional under propellant conditions and complex long run changes. (e) Methods It is concerned with small adjustments, for which the application of a marginal method is suitable. It deals with complex, dynamic changes inviting the use of advanced mathematical techniques. (f) Levels Micro adjustments in resource A allocation are made in response to changes in relative prices of goods and services.The aggregate level of income or rack up economic activities is considered to be constant quantity. Macro approach attempts to find the conditions of long-term expansions in output as a whole, assuming relative prices as constant (or significant). This distinction between micro and macroeconomics as presented above is only a matter of theoretical convenience. The two approaches are complementary and not hawkish one cannot consider these to be watertight compartments