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Showing posts from July, 2017

Micro and macro economics

Interdependence between micro and macro economicsMicro and macro-economics are different in their approaches:
- Micro studies the individual units of the whole economy whereas, Macro deals with the aggregates and sub-aggregates related to the whole economy
- The objective, subjective matter, assumptions etc, of micro economics are different from those macro-economics. But micro and macro are independent.
- The objective of the study of economic can’t be fulfilled by the study of only one, micro and macro.
- They are independent on each other because the parts affect the whole and the whole effects the parts.
- A general economy covers the both micros and macros.
- It should explain prices, output, incomes, behavior of individual firm and industry and the aggregates of the individual variables.   Dependence of micro on macro economics-Micro economics analyzes problem and behavior of small units of the economy. All micro economic variables are fraction of macro-economic variables. -Micro econom…