Microeconomics and Macroeconomics

Topics: Economics, Macroeconomics, Inflation Pages: 4 (966 words) Published: September 18, 2014
INTRODUCTION

Within the study of the fundamentals of economics must meet two basic concepts of economics these are Microeconomics and Macroeconomics and to get to know these concepts is necessary to know which is the economy and economics is the science that studies human behavior and trade , sales tax, receipt of wages, credit, is the science of the usual business of the above are some definitions that can be found in the economy as such. In this research we can differentiate macroeconomics microeconomics its relationship to the economy to serve both, we can also use them these two concepts indirectly or directly part of our daily lives daily spend, sometimes we invest, sometimes we produce etc .

Microeconomics and Macroeconomics

Macroeconomics is the branch of economics which deals with economic decision or behavior added of an economy as a whole; for example, the problem of inflation, unemployment, and the payment of a deficit. In short, the economy is studied as a whole. In contrast, Microeconomics is the branch of economics that studies the behavior of individual decision unit, as a single company, its relationship with the market, at what price to set a good, the quantity of a good should be produced, how a person uses their income to maximize satisfaction, and how the price of each product in the market is affected by the forces of supply and demand. For example, macroeconomics deals with GDP, inflation, interest rates, and unemployment. Microeconomics deals with the economics of health care or agriculture or work. For example, a macroeconomist would study the GDP figures, the Fed moves, the Dow Jones Industrial Average, or the Producer Price Index. A micro economist, on the other hand, you could try studying labor economics (ie unions, work shifts, etc.). Although "micro" means small and "macro" means large, the two should not be separated by the size of an economy or company. For example, Wal-Mart can be many times the...
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