Macro And Micro Of Sweden And United States

811 Words Sep 20th, 2015 4 Pages
Macro and Micro of Sweden and United States

What is Macroeconomics? Macroeconomics is the part of economics study that looks at the operation of a nation’s economy as a whole (30). Macroeconomics main focus is the production and consumption in an economy. Economists that specialize in macro investigate the effects of general taxes such as income and sales taxes output and prices. They also study the causes of economic upswings and downturn and the effects of monetary and fiscal point policy on economic wealth. Macroeconomists also determine how interests are determined and why so economies grow faster than others. (Economics)

What is Microeconomics? Microeconomics is part of economics study that looks at the behavior of people and organizations in particular markets (30). Microeconomics concern is consumer decision-making and utility maximization. They also look into firm production and profit maximization and individual’s equilibrium. Study the effects of government regulations on individual markets and externalities along with other market side effects. (Economics)

The relationship between Macroeconomics and Microeconomics is the production and consumption levels as the result of choice made by households and firms impact the country as a whole. For example, how much we spend as individuals on products ultimately impacts how much we import in order to spend to keep the economy regulating. If we are…
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