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    Economics Project Lina 12A PDF

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    lina atyani
    Macroeconomics takes a top-down approach looking at the overall economy, examining factors like GDP, inflation, and unemployment. Microeconomics takes a bottom-up approach focusing on individual decision-makers like households and businesses. Macroeconomics research has a broader scope looking at issues like fiscal policy, economic growth, and comparisons between countries. Microeconomics limits itself to specific markets and consumer/business decisions. Classical economic theories were mainly macro-analyses, while neoclassical economics focused more on micro-analyses of resource allocation and price determination. Macroeconomics is generally a better approach for understanding issues like poverty reduction and sustainable growth which require analysis of whole economies.

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    Economics Project Lina 12A PDF

    Uploaded by

    lina atyani
    21 views2 pages
    Macroeconomics takes a top-down approach looking at the overall economy, examining factors like GDP, inflation, and unemployment. Microeconomics takes a bottom-up approach focusing on individual decision-makers like households and businesses. Macroeconomics research has a broader scope looking at issues like fiscal policy, economic growth, and comparisons between countries. Microeconomics limits itself to specific markets and consumer/business decisions. Classical economic theories were mainly macro-analyses, while neoclassical economics focused more on micro-analyses of resource allocation and price determination. Macroeconomics is generally a better approach for understanding issues like poverty reduction and sustainable growth which require analysis of whole economies.

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    Economics project Lina 12A.pdf

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    Macroeconomics takes a top-down approach looking at the overall economy, examining factors like GDP, inflation, and unemployment. Microeconomics takes a bottom-up approach focusing on individual decision-makers like households and businesses. Macroeconomics research has a broader scope looking at issues like fiscal policy, economic growth, and comparisons between countries. Microeconomics limits itself to specific markets and consumer/business decisions. Classical economic theories were mainly macro-analyses, while neoclassical economics focused more on micro-analyses of resource allocation and price determination. Macroeconomics is generally a better approach for understanding issues like poverty reduction and sustainable growth which require analysis of whole economies.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    21 views2 pages

    Economics Project Lina 12A PDF

    Uploaded by

    lina atyani
    Macroeconomics takes a top-down approach looking at the overall economy, examining factors like GDP, inflation, and unemployment. Microeconomics takes a bottom-up approach focusing on individual decision-makers like households and businesses. Macroeconomics research has a broader scope looking at issues like fiscal policy, economic growth, and comparisons between countries. Microeconomics limits itself to specific markets and consumer/business decisions. Classical economic theories were mainly macro-analyses, while neoclassical economics focused more on micro-analyses of resource allocation and price determination. Macroeconomics is generally a better approach for understanding issues like poverty reduction and sustainable growth which require analysis of whole economies.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Why Macro Economics approach is better than

    Micro Economics approach?

    Have you ever thought what does economics mean? Economics is a social science that
    focuses on the production, distribution, and consumption of goods and services, and
    analyzes the choices that individuals, businesses, governments, and nations make to allocate
    resources.
    Macro and micro is one of the economic types. There is a big difference between micro and
    macro, there are so many examples that clarifies them.
    Macroeconomic is the branch of economics that deals with the structure, performance,
    behavior, and decision-making of the whole, or aggregate, economy. It takes a top-down
    approach and looks at the economy as a whole.
    The two main areas of macroeconomic research are long-term economic growth and
    shorter-term business cycles. Example of macroeconomic: Inflation, gross domestic product
    (GDP), national income, and unemployment levels.
    Microeconomic is a part of economics that contemplates the traits of the decision-makers
    within the economy such as households, individuals, and enterprises.
    Examples of microeconomic: Consumer equilibrium, individual income and savings.
    Microeconomic concepts such as supply and demand affect stocks prices in two ways:
    Directly and indirectly.

    Why Macro Economics approach is better than Micro Economics approach?

    Macroeconomic approach is a way to understand something using a macro perspective, for


    example, using aggregate economic variables such as total output, income, and employment.
    Microeconomic approach starts with the decisions of an individual about the allocation of
    time and income. The credit for the development of the theory of microeconomics approach
    is none other than Alfred Marshall. He was one of the most influential economists of his
    time.

    Macroeconomics has a much broader reach than microeconomics. Prominent areas of


    research in the field of macroeconomics concern the implications of fiscal policy, locating
    the reasons for inflation or unemployment, the implications of government borrowing and
    economic growth on a nationwide scale. Macroeconomists also examine globalization and
    global trading patterns and perform comparative studies between different countries in
    areas such as living standards and economic growth.
    Microeconomics focuses on the behavior of small units of the economy, it tends to limit
    itself to specific and specialized areas of study. This includes the balance of supply and
    demand in individual markets, the behavior of individual consumers, workforce demand,
    and how individual companies determine wages for their workforces.
    It is worth mentioning that classical economic theory of Adam Smith, Ricardo, Malthus
    and J.S. Mill was mainly macro-analysis, for they discussed the determination of growth of
    national income and wealth, the division of national income among broad social classes
    (total wages, total rent and total profits), the general price level and the effects of technology
    and population increase on the growth of the economy.
    On the other hand, neo-classical economics, in which writings of Pigou and Marshall
    predominate, is mainly micro-analysis. Neo-classical writers assumed that full- employment
    of resources prevailed in the economy and concentrated mainly upon showing how the
    resources were allocated to the production of various goods and how the relative prices of
    products and factors were determined.
    Macroeconomics focuses on the performance of economies – changes in economic output,
    inflation, interest and foreign exchange rates, and the balance of payments. Poverty
    reduction, social equity, and sustainable growth are only possible with sound monetary and
    fiscal policies.

    For the conclusion, macroeconomics should be carefully distinguished from


    microeconomics. It should be noted that microeconomics also does deal with some
    “aggregates” but not of the type with which macroeconomics is concerned. Microeconomics
    examines the behaviour of the industry in regard to the determination of its product-price,
    output and employment, and the industry is an aggregate of the various firms producing the
    same or similar product. Macroeconomics is a branch of economics dealing with
    performance, structure, behavior, and decision-making of an economy as a whole.

    References:
    https://www.investopedia.com/ask/answers/012615/how-do-i-differentiate-between-micro-and-macro-economics.asp

    https://flexbooks.ck12.org/user:zxbpc2rzcziwmthaz21hawwuy29t/cbook/episd-2019-2020-economics-with-emphasis-on-the-free-
    enterprise-system/section/1.11/primary/lesson/microeconomics/

    https://byjus.com/commerce/microeconomics-and-macroeconomics/

    Done by Lina Hashim Atyani .. Grade: 12A

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