There are 2 main branches of Economics
What is Macroeconomics?
It is a branch of economics
which studies interrelationship between different sectors of economy
like firms, Households, Govt and External Sector
What is the difference between microeconomics and macroeconomics?View Answer
|It is a branch of Economics which studies behaviour of individual economic agents
|It is branch of economics which studies aggregates of economy as a whole like Domestic Income, National income etc
|Its main tools are Demand and Supply of a Product
|Its main tools are Aggregate Demand and Aggregate Supply of a Product
|It is useful to regulate price of a product
|It is useful to regulate price of a economy like inflation, deflation
|Degree of Aggregation
|It studies individual business decisions like how much Demand increase if price is reduced
|It studies decisions made by country and government like effect on production by increase in interest rate
|It is also known as 'Price Theory'
|It is also known as 'Income and Employment Theory'
|Individual Income, Individual Output
|National Income, National Output
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