What is the difference between Microeconomics and Macroeconomics? - ProProfs Discuss
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What is the difference between Microeconomics and Macroeconomics?

Asked by R. Barnes, Last updated: May 23, 2020

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C. Adlai

A professional and experienced software developer with amateur writing.

C. Adlai, Software Developer, B.E (Bachelor of Engineering), California, USA

Answered Mar 27, 2020

Microeconomics focuses on the market's supply and demand factors that determine the economy's price levels. It pays careful attention to the ups and downs of the markets for services and goods, and how the price has a direct impact on these markets. An essential aspect of the economy, it is also to examine market failure (when the market does not provide satisfactory results). Microeconomics has become imperative in business and economics.

Its main ambition is to evaluate the economic forces, methods of determining supply or demand, and consumer behavior. On the other hand, macroeconomics analyzes similar concepts, yet they have a much more robust approach. The focus of macroeconomics is primarily a country's income, the position of foreign trade, with the study of unemployment rates, GDP, and price indices. Macroeconomics also assists us with an understanding of income, savings, and investments. Its models help governments to devise economic policies.

 

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