MICROECONOMICS AND MACROECONOMICS:
As the subject matter of economics,
Economics has been studied under two
broad branches:
●
Microeconomics and
●
Macroeconomics.
MICROECONOMICS:
- In microeconomics, we study the behavior of individual economic agents in the markets .
- Microeconomics can be about a sector, a particular region, group of people only rather wholistic purview of Economy.
- Micro-Economics is about how prices and quantities of goods and services are determined through the interaction of individuals in these markets.
- Example. Odd and Even formula for vehicles in Delhi can be an example of microeconomics as it affected auto sector in the NCR region only.
MACROECONOMICS:
- Macroeconomics studies the aggregate economy’s behaviour in a wholistic manner at the National level .
- The parameter of measurement are Inflation, National income, Growth Rate and GDP.
- Both microeconomics and macroeconomics are dependent and upon each other.
- For example, Slow down in a particular sector is microeconomy but slowdown of GDP growth rate is macroeconomics .
