Briefly stated, microeconomics is about individual decision makers, whereas macr

Question

Briefly stated, microeconomics is about individual decision makers, whereas macroeconomics is about the aggregate effect of all decision makers. However, this simple distinction does not adequately describe how macroeconomics differs from microeconomics. For this assignment you need to identify and describe three differences between macroeconomics and microeconomics.

For each of the three examples, give one of the following to help illustrate the difference between microeconomics and macroeconomics:

-the type of question that an economist might ask in macroeconomics as opposed to microeconomics

-the data that might be collected by a macroeconomist

-the type of decision that must be made at a macroeconomic level

Explanation / Answer

In the last point the question looks same but there is a vast difference in decision making of continuing or discontinuing a sustaining thing.

Microeconomic Macroeconomics Sudy of small segment of economy so the data collected for the study has a small population size Study of whole economy, here for studying the topic the data needed mostly has population size of whole population of the economy. Most of the economist agree upon the basic principles so the decisions made in microeconomics are less controversial and normaly not contended Few economist agree on basic principles which gave birth to multiple macroeconomic theories for the same factors so the decisions made in macroeconomics are more controversial and mostly contended It believes that markets tend to have disequilibrium for less time so economists usually ask questions which help them understand how to continue the sustaining equilibrium It is believed that economies tend to have longer disequilibriums so economists usually ask questions which help them understand how to discontinue the sustaining disequilibrium

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