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MICROECONOMICS VS MACROECONOMICS - Coggle Diagram
MICROECONOMICS VS MACROECONOMICS
IMPORTANCE
1.MICRO •Focus for individual and firm
•Study of prices and quantity
•Consumer and producer behavior
2.MACRO
•Study on gdp, inflation and unemployed
•Capacity on economy
•Aggregate demand
INDICATORS
Macro
Industrial production
The level of output of industries in the economy
Foreign trade
The level of exports and imports.
Micro
Product Proving
How individual businesses set prices for their goods or services
Supply and demand
This refers to the forces that determine the price and quantity of a good or service in a specific market.
DEFINATION
macro
maximize national income and growth
Examples: lnflation
Aggregate demand (AD)
Employement/unemployment
Productive capacity of economy
micro
maximize welfare of individuals and companies
Examples : Individuals market
Supply of goods.
Individual labor market
Individual consumer behavior
"SCOPE"
MACROECONOMIC
• NATIONAL PRODUCTION.
•AGGRREGATE OF PRICE LEVEL.
• NATIONAL INCOME.
EMPLOYEMENT & UNEMPLOYMENT IN ECONOMY.
MICROECONOMICS
• DEMAND AND SUPPLY
•PRODUCTION
•CONSUMPTION
•ECONOMIC WELFARE