Tuesday 29 September 2009

Macroeconomics and Microeconomics

Macroeconomics is a branch of economics that deals with the performance, structure, and behavior of a national or regional economy as a whole.Along with microeconomics, macroeconomics is one of the two most general fields in economics. Macroeconomists study aggregated indicators such as GDP, unemployment rates, and price indices to understand how the whole economy functions. Macroeconomists develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, savings, investment, international trade and international finance. In contrast, microeconomics is primarily focused on the actions of individual agents, such as firms and consumers, and how their behavior determines prices and quantities in specific markets.Microeconomics is called an individual economics or a small economics.economics is the macroeconomic symmetry. Microeconomics to a single economic unit as the main object of study, analysis of individual producers how to allocate the limited resources in the production of various commodities in order to to achieve maximum profit; individual consumers on how the limited distribution of income in a variety of consumption goods in order to get the most satisfaction. At the same time, micro-economics, also analyzes the output of individual producers, the cost, the use of factors of production volume and profits to be confirmed; factor incomes for suppliers of how to decide; the effectiveness of a single commodity, supply, demand and price how to determine .

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