Differences Between Micro And Macroeconomics

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1. What is the difference between micro and macro economics? Give an example of a microeconomic phenomenon and an example of a macroeconomic one.

Microeconomics is a smaller window compared to macroeconomics; microeconomics focuses on things surrounding individual businesses and consumers whereas macroeconomics focuses on the bigger picture, or the whole aggregate. Microeconomics is the study of choices that individuals and businesses make, the way those choices interact in markets, and the influence of governments. Different studies within microeconomics include what to produce and how much to charge when it comes to an individual firm. When looking at a household microeconomics would be the study of what and how much of it to buy. Other areas of study for microeconomics would be poverty, income rate on jobs, consumption patterns, and distribution of output; overall microeconomics is “the branch of economics that examines the functioning of individual industries and the
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This branch of economics looks at the economy as a whole. Areas of study for macroeconomics would include national output, national product, national income, employment and unemployment in the whole economy, and overall price level to name a few. Macroeconomics is “the branch of economics that examines the economic behavior of aggregates – income, employment, output, and so on – on a national scale.” (Case, Fair, & Oster, 2014)

In conclusion, economics is studying the use of scarce resources for unlimited wants; microeconomics focuses on the individual firms and consumers using these resources, while macroeconomics focuses on the larger scale of the economy as a whole using these resources.

2. Go to the internet and find a recent article that you find that is relevant for this section. Provide the link, and a summary of the article and discuss, in a few words, why you found the article
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