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What is the difference between micro and macro economy ? And it's characteristics also?
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What is the difference between micro and macro economy ? And it's char...
★★𝙢𝙞𝙘𝙧𝙤𝙚𝙘𝙤𝙣𝙤𝙢𝙞𝙘𝙨 𝙛𝙤𝙘𝙪𝙨𝙚𝙨 𝙤𝙣 𝙞𝙣𝙙𝙞𝙫𝙞𝙙𝙪𝙖𝙡 𝙘𝙤𝙣𝙨𝙪𝙢𝙚𝙧𝙨 𝙖𝙣𝙙 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨𝙚𝙨..𝑀𝑖𝑐𝑟𝑜𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑖𝑠 𝑡ℎ𝑒 𝑠𝑡𝑢𝑑𝑦 𝑜𝑓 𝑑𝑒𝑐𝑖𝑠𝑖𝑜𝑛𝑠 𝑚𝑎𝑑𝑒 𝑏𝑦 𝑝𝑒𝑜𝑝𝑙𝑒 𝑎𝑛𝑑 𝑏𝑢𝑠𝑖𝑛𝑒𝑠𝑠𝑒𝑠 𝑟𝑒𝑔𝑎𝑟𝑑𝑖𝑛𝑔 𝑡ℎ𝑒 𝑎𝑙𝑙𝑜𝑐𝑎𝑡𝑖𝑜𝑛 𝑜𝑓 𝑟𝑒𝑠𝑜𝑢𝑟𝑐𝑒𝑠 𝑎𝑛𝑑 𝑝𝑟𝑖𝑐𝑒𝑠 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠 𝑎𝑛𝑑 𝑠𝑒𝑟𝑣𝑖𝑐𝑒𝑠. 𝑇ℎ𝑒 𝑔𝑜𝑣𝑒𝑟𝑛𝑚𝑒𝑛𝑡 𝑑𝑒𝑐𝑖𝑑𝑒𝑠 𝑡ℎ𝑒 𝑟𝑒𝑔𝑢𝑙𝑎𝑡𝑖𝑜𝑛 𝑓𝑜𝑟 𝑡𝑎𝑥𝑒𝑠. 𝑀𝑖𝑐𝑟𝑜𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑓𝑜𝑐𝑢𝑠𝑒𝑠 𝑜𝑛 𝑡ℎ𝑒 𝑠𝑢𝑝𝑝𝑙𝑦, 𝑡ℎ𝑎𝑡 𝑑𝑒𝑡𝑒𝑟𝑚𝑖𝑛𝑒𝑠 𝑡ℎ𝑒 𝑝𝑟𝑖𝑐𝑒 𝑙𝑒𝑣𝑒𝑙 𝑜𝑓 𝑡ℎ𝑒 𝑒𝑐𝑜𝑛𝑜𝑚𝑦. 𝐼𝑡 𝑢𝑠𝑒𝑠 𝑡ℎ𝑒 𝑏𝑜𝑡𝑡𝑜𝑚-𝑢𝑝 𝑎𝑝𝑝𝑟𝑜𝑎𝑐ℎ 𝑠𝑡𝑟𝑎𝑡𝑒𝑔𝑦 𝑡𝑜 𝑎𝑛𝑎𝑙𝑦𝑧𝑒 𝑡ℎ𝑒 𝑒𝑐𝑜𝑛𝑜𝑚𝑦. 𝐼𝑛 𝑜𝑡ℎ𝑒𝑟 𝑤𝑜𝑟𝑑𝑠, 𝑚𝑖𝑐𝑟𝑜𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑡𝑟𝑖𝑒𝑠 𝑡𝑜 𝑢𝑛𝑑𝑒𝑟𝑠𝑡𝑎𝑛𝑑 ℎ𝑢𝑚𝑎𝑛 𝑐ℎ𝑜𝑖𝑐𝑒𝑠 𝑎𝑛𝑑 𝑟𝑒𝑠𝑜𝑢𝑟𝑐𝑒 𝑎𝑙𝑙𝑜𝑐𝑎𝑡𝑖𝑜𝑛. 𝑀𝑖𝑐𝑟𝑜𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑑𝑜𝑒𝑠 𝑛𝑜𝑡 𝑑𝑒𝑐𝑖𝑑𝑒 𝑤ℎ𝑎𝑡 𝑎𝑟𝑒 𝑡ℎ𝑒 𝑐ℎ𝑎𝑛𝑔𝑒𝑠 𝑡𝑎𝑘𝑖𝑛𝑔 𝑝𝑙𝑎𝑐𝑒 𝑖𝑛 𝑡ℎ𝑒 𝑚𝑎𝑟𝑘𝑒𝑡, 𝑖𝑛𝑠𝑡𝑒𝑎𝑑, 𝑖𝑡 𝑒𝑥𝑝𝑙𝑎𝑖𝑛𝑠 𝑤ℎ𝑦 𝑡ℎ𝑒𝑟𝑒 𝑎𝑟𝑒 𝑐ℎ𝑎𝑛𝑔𝑒𝑠 ℎ𝑎𝑝𝑝𝑒𝑛𝑖𝑛𝑔 𝑖𝑛 𝑡ℎ𝑒 𝑚𝑎𝑟𝑘𝑒𝑡.𝑇ℎ𝑒 𝑚𝑎𝑖𝑛 𝑘𝑒𝑦 𝑟𝑜𝑙𝑒 𝑜𝑓 𝑚𝑖𝑐𝑟𝑜𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑖𝑠 𝑡𝑜 𝑒𝑥𝑎𝑚𝑖𝑛𝑒 ℎ𝑜𝑤 𝑎 𝑐𝑜𝑚𝑝𝑎𝑛𝑦 𝑐𝑜𝑢𝑙𝑑 𝑚𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑖𝑡𝑠 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑎𝑛𝑑 𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝑠𝑜 𝑡ℎ𝑎𝑡 𝑖𝑡 𝑐𝑜𝑢𝑙𝑑 𝑙𝑜𝑤𝑒𝑟 𝑝𝑟𝑖𝑐𝑒𝑠 𝑎𝑛𝑑 𝑏𝑒𝑡𝑡𝑒𝑟 𝑐𝑜𝑚𝑝𝑒𝑡𝑒 𝑖𝑛 𝑖𝑡𝑠 𝑖𝑛𝑑𝑢𝑠𝑡𝑟𝑦. 𝐴 𝑙𝑜𝑡 𝑜𝑓 𝑚𝑖𝑐𝑟𝑜𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝑖𝑛𝑓𝑜𝑟𝑚𝑎𝑡𝑖𝑜𝑛 𝑐𝑎𝑛 𝑏𝑒 𝑔𝑙𝑒𝑎𝑛𝑒𝑑 𝑓𝑟𝑜𝑚 𝑡ℎ𝑒 𝑓𝑖𝑛𝑎𝑛𝑐𝑖𝑎𝑙 𝑠𝑡𝑎𝑡𝑒𝑚𝑒𝑛𝑡𝑠.𝑡ℎ𝑒 𝑖𝑚𝑝𝑜𝑟𝑡𝑎𝑛𝑡 𝑘𝑒𝑦 𝑓𝑎𝑐𝑡𝑜𝑟𝑠 𝑜𝑓 𝑚𝑖𝑐𝑟𝑜𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑎𝑟𝑒 :𝐷𝑒𝑚𝑎𝑛𝑑, 𝑆𝑢𝑝𝑝𝑙𝑦, 𝑎𝑛𝑑 𝐸𝑞𝑢𝑖𝑙𝑖𝑏𝑟𝑖𝑢𝑚𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑇ℎ𝑒𝑜𝑟𝑦𝐶𝑜𝑠𝑡𝑠 𝑜𝑓 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛𝐿𝑎𝑏𝑜𝑟 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠𝐸𝑥𝑎𝑚𝑝𝑙𝑒𝑠: 𝐼𝑛𝑑𝑖𝑣𝑖𝑑𝑢𝑎𝑙 𝐷𝑒𝑚𝑎𝑛𝑑, 𝑃𝑟𝑖𝑐𝑒 𝑜𝑓 𝑎 𝑝𝑟𝑜𝑑𝑢𝑐𝑡★★𝙏𝙝𝙚 𝙛𝙚𝙖𝙩𝙪𝙧𝙚𝙨 𝙤𝙛 𝙈𝙞𝙘𝙧𝙤𝙚𝙘𝙤𝙣𝙤𝙢𝙞𝙘𝙨 𝙖𝙧𝙚:1.𝐼𝑡 𝑖𝑠 𝑐𝑜𝑛𝑐𝑒𝑟𝑛𝑒𝑑 𝑤𝑖𝑡ℎ 𝑡ℎ𝑒 𝑠𝑡𝑢𝑑𝑦 𝑜𝑓 𝑖𝑛𝑑𝑖𝑣𝑖𝑑𝑢𝑎𝑙 𝑢𝑛𝑖𝑡𝑠 𝑖𝑛 𝑡ℎ𝑒 𝑒𝑐𝑜𝑛𝑜𝑚𝑦.2.𝑀𝑖𝑐𝑟𝑜 𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝑎𝑛𝑎𝑙𝑦𝑠𝑖𝑠 𝑖𝑛𝑣𝑜𝑙𝑣𝑒𝑠 𝑝𝑟𝑜𝑑𝑢𝑐𝑡 𝑝𝑟𝑖𝑐𝑖𝑛𝑔, 𝑓𝑎𝑐𝑡𝑜𝑟 𝑝𝑟𝑖𝑐𝑖𝑛𝑔 𝑎𝑛𝑑 𝑡ℎ𝑒𝑜𝑟𝑦 𝑜𝑓 𝑤𝑒𝑙𝑓𝑎𝑟𝑒.3.𝐴𝑠𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛 𝑜𝑓 "𝐶𝑒𝑡𝑒𝑟𝑖𝑠 𝑃𝑎𝑟𝑖𝑏𝑢𝑠" 𝑖𝑠 𝑎𝑙𝑤𝑎𝑦𝑠 𝑚𝑎𝑑𝑒 𝑖𝑛 𝑒𝑣𝑒𝑟𝑦 𝑚𝑖𝑐𝑟𝑜 𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝑡ℎ𝑒𝑜𝑟𝑦. 𝐼𝑡 𝑚𝑒𝑎𝑛𝑠 𝑡ℎ𝑒 𝑡ℎ𝑒𝑜𝑟𝑦 𝑖𝑠 𝑎𝑝𝑝𝑙𝑖𝑐𝑎𝑏𝑙𝑒 𝑜𝑛𝑙𝑦 𝑤ℎ𝑒𝑛 '𝑜𝑡ℎ𝑒𝑟 𝑡ℎ𝑖𝑛𝑔𝑠 𝑟𝑒𝑚𝑎𝑖𝑛 𝑢𝑛𝑐ℎ𝑎𝑛𝑔𝑒𝑑'.4. 𝑀𝑖𝑐𝑟𝑜 𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑑𝑖𝑣𝑖𝑑𝑒𝑠 𝑡ℎ𝑒 𝑒𝑐𝑜𝑛𝑜𝑚𝑦 𝑖𝑛𝑡𝑜 𝑣𝑎𝑟𝑖𝑜𝑢𝑠 𝑠𝑚𝑎𝑙𝑙 𝑢𝑛𝑖𝑡𝑠 𝑎𝑛𝑑 𝑒𝑣𝑒𝑟𝑦 𝑢𝑛𝑖𝑡 𝑖𝑠 𝑎𝑛𝑎𝑙𝑦𝑠𝑒𝑑 𝑖𝑛 𝑑𝑒𝑡𝑎𝑖𝑙, 𝑖.𝑒. 𝑢𝑠𝑒𝑠 𝑠𝑙𝑖𝑐𝑖𝑛𝑔 𝑚𝑒𝑡ℎ𝑜𝑑.★★𝙈𝙖𝙘𝙧𝙤𝙚𝙘𝙤𝙣𝙤𝙢𝙞𝙘𝙨 𝙙𝙚𝙖𝙡𝙨 𝙬𝙞𝙩𝙝 𝙩𝙝𝙚 𝙗𝙚𝙝𝙖𝙫𝙞𝙤𝙪𝙧 𝙤𝙛 𝙩𝙝𝙚 𝙖𝙜𝙜𝙧𝙚𝙜𝙖𝙩𝙚 𝙚𝙘𝙤𝙣𝙤𝙢𝙮 .𝑀𝑖𝑐𝑟𝑜𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑖𝑠 𝑡ℎ𝑒 𝑠𝑡𝑢𝑑𝑦 𝑜𝑓 𝑑𝑒𝑐𝑖𝑠𝑖𝑜𝑛𝑠 𝑚𝑎𝑑𝑒 𝑏𝑦 𝑝𝑒𝑜𝑝𝑙𝑒 𝑎𝑛𝑑 𝑏𝑢𝑠𝑖𝑛𝑒𝑠𝑠𝑒𝑠 𝑟𝑒𝑔𝑎𝑟𝑑𝑖𝑛𝑔 𝑡ℎ𝑒 𝑎𝑙𝑙𝑜𝑐𝑎𝑡𝑖𝑜𝑛 𝑜𝑓 𝑟𝑒𝑠𝑜𝑢𝑟𝑐𝑒𝑠 𝑎𝑛𝑑 𝑝𝑟𝑖𝑐𝑒𝑠 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠 𝑎𝑛𝑑 𝑠𝑒𝑟𝑣𝑖𝑐𝑒𝑠. 𝑇ℎ𝑒 𝑔𝑜𝑣𝑒𝑟𝑛𝑚𝑒𝑛𝑡 𝑑𝑒𝑐𝑖𝑑𝑒𝑠 𝑡ℎ𝑒 𝑟𝑒𝑔𝑢𝑙𝑎𝑡𝑖𝑜𝑛 𝑓𝑜𝑟 𝑡𝑎𝑥𝑒𝑠. 𝑀𝑖𝑐𝑟𝑜𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑓𝑜𝑐𝑢𝑠𝑒𝑠 𝑜𝑛 𝑡ℎ𝑒 𝑠𝑢𝑝𝑝𝑙𝑦, 𝑡ℎ𝑎𝑡 𝑑𝑒𝑡𝑒𝑟𝑚𝑖𝑛𝑒𝑠 𝑡ℎ𝑒 𝑝𝑟𝑖𝑐𝑒 𝑙𝑒𝑣𝑒𝑙 𝑜𝑓 𝑡ℎ𝑒 𝑒𝑐𝑜𝑛𝑜𝑚𝑦. 𝐼𝑡 𝑢𝑠𝑒𝑠 𝑡ℎ𝑒 𝑏𝑜𝑡𝑡𝑜𝑚-𝑢𝑝 𝑎𝑝𝑝𝑟𝑜𝑎𝑐ℎ 𝑠𝑡𝑟𝑎𝑡𝑒𝑔𝑦 𝑡𝑜 𝑎𝑛𝑎𝑙𝑦𝑧𝑒 𝑡ℎ𝑒 𝑒𝑐𝑜𝑛𝑜𝑚𝑦. 𝐼𝑛 𝑜𝑡ℎ𝑒𝑟 𝑤𝑜𝑟𝑑𝑠, 𝑚𝑖𝑐𝑟𝑜𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑡𝑟𝑖𝑒𝑠 𝑡𝑜 𝑢𝑛𝑑𝑒𝑟𝑠𝑡𝑎𝑛𝑑 ℎ𝑢𝑚𝑎𝑛 𝑐ℎ𝑜𝑖𝑐𝑒𝑠 𝑎𝑛𝑑 𝑟𝑒𝑠𝑜𝑢𝑟𝑐𝑒 𝑎𝑙𝑙𝑜𝑐𝑎𝑡𝑖𝑜𝑛. 𝑀𝑖𝑐𝑟𝑜𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑑𝑜𝑒𝑠 𝑛𝑜𝑡 𝑑𝑒𝑐𝑖𝑑𝑒 𝑤ℎ𝑎𝑡 𝑎𝑟𝑒 𝑡ℎ𝑒 𝑐ℎ𝑎𝑛𝑔𝑒𝑠 𝑡𝑎𝑘𝑖𝑛𝑔 𝑝𝑙𝑎𝑐𝑒 𝑖𝑛 𝑡ℎ𝑒 𝑚𝑎𝑟𝑘𝑒𝑡, 𝑖𝑛𝑠𝑡𝑒𝑎𝑑, 𝑖𝑡 𝑒𝑥𝑝𝑙𝑎𝑖𝑛𝑠 𝑤ℎ𝑦 𝑡ℎ𝑒𝑟𝑒 𝑎𝑟𝑒 𝑐ℎ𝑎𝑛𝑔𝑒𝑠 ℎ𝑎𝑝𝑝𝑒𝑛𝑖𝑛𝑔 𝑖𝑛 𝑡ℎ𝑒 𝑚𝑎𝑟𝑘𝑒𝑡.𝑇ℎ𝑒 𝑚𝑎𝑖𝑛 𝑘𝑒𝑦 𝑟𝑜𝑙𝑒 𝑜𝑓 𝑚𝑖𝑐𝑟𝑜𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑖𝑠 𝑡𝑜 𝑒𝑥𝑎𝑚𝑖𝑛𝑒 ℎ𝑜𝑤 𝑎 𝑐𝑜𝑚𝑝𝑎𝑛𝑦 𝑐𝑜𝑢𝑙𝑑 𝑚𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑖𝑡𝑠 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑎𝑛𝑑 𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝑠𝑜 𝑡ℎ𝑎𝑡 𝑖𝑡 𝑐𝑜𝑢𝑙𝑑 𝑙𝑜𝑤𝑒𝑟 𝑝𝑟𝑖𝑐𝑒𝑠 𝑎𝑛𝑑 𝑏𝑒𝑡𝑡𝑒𝑟 𝑐𝑜𝑚𝑝𝑒𝑡𝑒 𝑖𝑛 𝑖𝑡𝑠 𝑖𝑛𝑑𝑢𝑠𝑡𝑟𝑦. 𝐴 𝑙𝑜𝑡 𝑜𝑓 𝑚𝑖𝑐𝑟𝑜𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝑖𝑛𝑓𝑜𝑟𝑚𝑎𝑡𝑖𝑜𝑛 𝑐𝑎𝑛 𝑏𝑒 𝑔𝑙𝑒𝑎𝑛𝑒𝑑 𝑓𝑟𝑜𝑚 𝑡ℎ𝑒 𝑓𝑖𝑛𝑎𝑛𝑐𝑖𝑎𝑙 𝑠𝑡𝑎𝑡𝑒𝑚𝑒𝑛𝑡𝑠.𝑡ℎ𝑒 𝑖𝑚𝑝𝑜𝑟𝑡𝑎𝑛𝑡 𝑘𝑒𝑦 𝑓𝑎𝑐𝑡𝑜𝑟𝑠 𝑜𝑓 𝑚𝑖𝑐𝑟𝑜𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑎𝑟𝑒 :𝐷𝑒𝑚𝑎𝑛𝑑, 𝑆𝑢𝑝𝑝𝑙𝑦, 𝑎𝑛𝑑 𝐸𝑞𝑢𝑖𝑙𝑖𝑏𝑟𝑖𝑢𝑚𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑇ℎ𝑒𝑜𝑟𝑦𝐶𝑜𝑠𝑡𝑠 𝑜𝑓 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛𝐿𝑎𝑏𝑜𝑟 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠𝐸𝑥𝑎𝑚𝑝𝑙𝑒𝑠: 𝐼𝑛𝑑𝑖𝑣𝑖𝑑𝑢𝑎𝑙 𝐷𝑒𝑚𝑎𝑛𝑑, 𝑃𝑟𝑖𝑐𝑒 𝑜𝑓 𝑎 𝑝𝑟𝑜𝑑𝑢𝑐𝑡.★★𝙈𝙖𝙘𝙧𝙤𝙚𝙘𝙤𝙣𝙤𝙢𝙞𝙘𝙨 𝙞𝙨 𝙩𝙝𝙖𝙩 𝙗𝙧𝙖𝙣𝙘𝙝 𝙤𝙛 𝙚𝙘𝙤𝙣𝙤𝙢𝙞𝙘𝙨 𝙬𝙝𝙞𝙘𝙝 𝙙𝙚𝙖𝙡𝙨 𝙬𝙞𝙩𝙝 𝙩𝙝𝙚 𝙨𝙩𝙪𝙙𝙮 𝙤𝙛 𝙣𝙖𝙩𝙞𝙤𝙣𝙖𝙡 𝙖𝙜𝙜𝙧𝙚𝙜𝙖𝙩𝙚𝙨. 𝙏𝙝𝙚 𝙛𝙚𝙖𝙩𝙪𝙧𝙚𝙨 𝙤𝙛 𝙢𝙖𝙘𝙧𝙤𝙚𝙘𝙤𝙣𝙤𝙢𝙞𝙘𝙨 𝙖𝙧𝙚:(1) 𝑆𝑡𝑢𝑑𝑦 𝑜𝑓 𝐴𝑔𝑔𝑟𝑒𝑔𝑎𝑡𝑒𝑠: 𝑀𝑎𝑐𝑟𝑜 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑑𝑒𝑎𝑙𝑠 𝑤𝑖𝑡ℎ 𝑡ℎ𝑒 𝑠𝑡𝑢𝑑𝑦 𝑜𝑓 𝑒𝑛𝑡𝑖𝑟𝑒 𝑒𝑐𝑜𝑛𝑜𝑚𝑦. 𝐼𝑡 𝑠𝑡𝑢𝑑𝑖𝑒𝑠 𝑡ℎ𝑒 𝑜𝑣𝑒𝑟𝑎𝑙𝑙 𝑐𝑜𝑛𝑑𝑖𝑡𝑖𝑜𝑛𝑠 𝑖𝑛 𝑡ℎ𝑒 𝑒𝑐𝑜𝑛𝑜𝑚𝑦, 𝑠𝑢𝑐ℎ 𝑎𝑠 𝑁𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝐼𝑛𝑐𝑜𝑚𝑒, 𝑁𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝑂𝑢𝑡𝑝𝑢𝑡, 𝑇𝑜𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑚𝑒𝑛𝑡, 𝐺𝑒𝑛𝑒𝑟𝑎𝑙 𝑃𝑟𝑖𝑐𝑒 𝐿𝑒𝑣𝑒𝑙 𝑒𝑡𝑐.(2) 𝐿𝑢𝑚𝑝𝑖𝑛𝑔 𝑀𝑒𝑡ℎ𝑜𝑑: 𝑀𝑎𝑐𝑟𝑜 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑢𝑠𝑒𝑠 𝑡ℎ𝑒 '𝑙𝑢𝑚𝑝𝑖𝑛𝑔' 𝑚𝑒𝑡ℎ𝑜𝑑 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑝𝑢𝑟𝑝𝑜𝑠𝑒 𝑜𝑓 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝑠𝑡𝑢𝑑𝑦. 𝑇ℎ𝑒 𝑎𝑝𝑝𝑟𝑜𝑎𝑐ℎ 𝑜𝑓 𝑀𝑎𝑐𝑟𝑜 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑖𝑠 𝑎𝑔𝑔𝑟𝑒𝑔𝑎𝑡𝑖𝑣𝑒 𝑖𝑛 𝑛𝑎𝑡𝑢𝑟𝑒. 𝐼𝑡 𝑐𝑜𝑛𝑠𝑖𝑑𝑒𝑟𝑠 𝑎𝑔𝑔𝑟𝑒𝑔𝑎𝑡𝑒𝑠 𝑙𝑖𝑘𝑒 𝑁𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝐼𝑛𝑐𝑜𝑚𝑒, 𝑡𝑜𝑡𝑎𝑙 𝑐𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛, 𝐺𝑒𝑛𝑒𝑟𝑎𝑙 𝑎𝑔𝑔𝑟𝑒𝑔𝑎𝑡𝑖𝑣𝑒 𝑝𝑟𝑖𝑐𝑒 𝑙𝑒𝑣𝑒𝑙 𝑒𝑡𝑐., 𝑖𝑛𝑠𝑡𝑒𝑎𝑑 𝑜𝑓 𝑝𝑒𝑟𝑠𝑜𝑛𝑎𝑙 𝑖𝑛𝑐𝑜𝑚𝑒, 𝑝𝑒𝑟 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 𝑐𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛, 𝑖𝑛𝑑𝑖𝑣𝑖𝑑𝑢𝑎𝑙 𝑝𝑟𝑖𝑐𝑒𝑠 𝑜𝑓 𝑐𝑜𝑚𝑚𝑜𝑑𝑖𝑡𝑖𝑒𝑠 𝑒𝑡𝑐.(3) 𝐴 𝐺𝑒𝑛𝑒𝑟𝑎𝑙 𝐸𝑞𝑢𝑖𝑙𝑖𝑏𝑟𝑖𝑢𝑚 𝐴𝑛𝑎𝑙𝑦𝑠𝑖𝑠: 𝑀𝑎𝑐𝑟𝑜 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑎𝑛𝑎𝑙𝑦𝑠𝑖𝑠 𝑖𝑠 𝑏𝑎𝑠𝑒𝑑 𝑜𝑛 𝑔𝑒𝑛𝑒𝑟𝑎𝑙 𝑒𝑞𝑢𝑖𝑙𝑖𝑏𝑟𝑖𝑢𝑚. 𝑇ℎ𝑖𝑠 𝑖𝑠 𝑏𝑒𝑐𝑎𝑢𝑠𝑒 𝑖𝑡 𝑑𝑒𝑎𝑙 𝑤𝑖𝑡ℎ 𝑡ℎ𝑒 𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝑠𝑦𝑠𝑡𝑒𝑚 𝑎𝑠 𝑎 𝑤ℎ𝑜𝑙𝑒 𝑎𝑛𝑑 𝑠𝑡𝑢𝑑𝑖𝑒𝑠 𝑡ℎ𝑒 𝑖𝑛𝑡𝑒𝑟 𝑟𝑒𝑙𝑎𝑡𝑖𝑜𝑛𝑠ℎ𝑖𝑝𝑠 𝑎𝑛𝑑 𝑖𝑛𝑡𝑒𝑟𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑐𝑒 𝑏𝑒𝑡𝑤𝑒𝑒𝑛 𝑡ℎ𝑒 𝑣𝑎𝑟𝑖𝑜𝑢𝑠 𝑚𝑎𝑐𝑟𝑜 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒𝑠 𝑖𝑛 𝑎𝑛 𝑒𝑐𝑜𝑛𝑜𝑚𝑦. 𝑒.𝑔. 𝑊ℎ𝑒𝑛 𝑎𝑔𝑔𝑟𝑒𝑔𝑎𝑡𝑒 𝑑𝑒𝑚𝑎𝑛𝑑 𝑎𝑛𝑑 𝑎𝑔𝑔𝑟𝑒𝑔𝑎𝑡𝑒 𝑠𝑢𝑝𝑝𝑙𝑦 𝑎𝑟𝑒 𝑒𝑞𝑢𝑎𝑙. 𝐼𝑡 𝑤𝑖𝑙𝑙 𝑑𝑒𝑡𝑒𝑟𝑚𝑖𝑛𝑒 𝑡ℎ𝑒 𝑙𝑒𝑣𝑒𝑙 𝑜𝑓 𝑖𝑛𝑐𝑜𝑚𝑒 𝑎𝑛𝑑 𝑒𝑚𝑝𝑙𝑜𝑦𝑚𝑒𝑛𝑡.(4) 𝐼𝑛𝑐𝑜𝑚𝑒 𝐴𝑛𝑎𝑙𝑦𝑠𝑖𝑠: 𝑀𝑎𝑐𝑟𝑜 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑖𝑠 𝑎𝑙𝑠𝑜 𝑘𝑛𝑜𝑤𝑛 𝑎𝑠 𝑖𝑛𝑐𝑜𝑚𝑒 𝑡ℎ𝑒𝑜𝑟𝑦. 𝐼𝑡 𝑠𝑡𝑢𝑑𝑖𝑒𝑠 𝑡ℎ𝑒 𝑓𝑎𝑐𝑡𝑜𝑟𝑠 𝑑𝑒𝑡𝑒𝑟𝑚𝑖𝑛𝑖𝑛𝑔 𝑁𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝐼𝑛𝑐𝑜𝑚𝑒 𝑎𝑛𝑑 𝑒𝑚𝑝𝑙𝑜𝑦𝑚𝑒𝑛𝑡 𝑎𝑛𝑑 𝑡ℎ𝑒 𝑐𝑎𝑢𝑠𝑒𝑠 𝑜𝑓 𝑓𝑙𝑢𝑐𝑡𝑢𝑎𝑡𝑖𝑜𝑛𝑠 𝑖𝑛 𝑖𝑛𝑐𝑜𝑚𝑒 𝑎𝑛𝑑 𝑒𝑚𝑝𝑙𝑜𝑦𝑚𝑒𝑛𝑡.(5) 𝑃𝑜𝑙𝑖𝑐𝑦 𝑂𝑟𝑖𝑒𝑛𝑡𝑒𝑑: 𝑇ℎ𝑒 𝑠𝑡𝑢𝑑𝑦 𝑜𝑓 𝑀𝑎𝑐𝑟𝑜 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑖𝑠 𝑢𝑠𝑒𝑓𝑢𝑙 𝑖𝑛 𝑓𝑜𝑟𝑚𝑢𝑙𝑎𝑡𝑖𝑛𝑔 𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝑝𝑜𝑙𝑖𝑐𝑖𝑒𝑠 𝑡𝑜 𝑝𝑟𝑜𝑚𝑜𝑡𝑒 𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝑔𝑟𝑜𝑤𝑡ℎ, 𝑡𝑜 𝑐𝑜𝑛𝑡𝑟𝑜𝑙 𝑖𝑛𝑓𝑙𝑎𝑡𝑖𝑜𝑛, 𝑡𝑜 𝑔𝑒𝑛𝑒𝑟𝑎𝑡𝑒 𝑒𝑚𝑝𝑙𝑜𝑦𝑚𝑒𝑛𝑡, 𝑡𝑜 𝑝𝑢𝑙𝑙 𝑡ℎ𝑒 𝑒𝑐𝑜𝑛𝑜𝑚𝑦 𝑜𝑢𝑡 𝑜𝑓 𝑑𝑒𝑝𝑟𝑒𝑠𝑠𝑖𝑜𝑛 𝑒𝑡𝑐. 𝑀𝑎𝑐𝑟𝑜 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑖𝑠 𝑎 𝑝𝑜𝑙𝑖𝑐𝑦 𝑜𝑟𝑖𝑒𝑛𝑡𝑒𝑑 𝑠𝑐𝑖𝑒𝑛𝑐𝑒.(6) 𝐵𝑎𝑠𝑒𝑑 𝑜𝑛 𝐼𝑛𝑡𝑒𝑟𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑐𝑒: 𝐼𝑛𝑡𝑒𝑟𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑐𝑒 𝑖𝑠 𝑡ℎ𝑒 𝑐𝑜𝑟𝑒 𝑠𝑢𝑏𝑗𝑒𝑐𝑡 𝑜𝑓 𝑀𝑎𝑟𝑐𝑜 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠. 𝐸𝑣𝑒𝑟𝑦𝑡ℎ𝑖𝑛𝑔 𝑑𝑒𝑝𝑒𝑛𝑑𝑠 𝑜𝑛 𝑒𝑣𝑒𝑟𝑦𝑡ℎ𝑖𝑛𝑔 𝑒𝑙𝑠𝑒. 𝑆𝑜 𝑡ℎ𝑒 𝑖𝑠 𝑎𝑛 𝑒𝑙𝑒𝑚𝑒𝑛𝑡 𝑜𝑓 𝑖𝑛𝑡𝑒𝑟𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑐𝑒 𝑎𝑚𝑜𝑛𝑔 𝑡ℎ𝑒 𝑀𝑎𝑐𝑟𝑜 - 𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒𝑠. 𝐹𝑜𝑟 𝑒𝑥𝑎𝑚𝑝𝑙𝑒𝑠. 𝑐ℎ𝑎𝑛𝑔𝑒𝑠 𝑖𝑛 𝑡ℎ𝑒 𝑙𝑒𝑣𝑒𝑙 𝑜𝑓 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝑤𝑖𝑙𝑙 𝑓𝑖𝑛𝑎𝑙𝑙𝑦 𝑟𝑒𝑠𝑢𝑙𝑡 𝑖𝑛 𝑐ℎ𝑎𝑛𝑔𝑒𝑠 𝑖𝑛 𝑙𝑒𝑣𝑒𝑙 𝑜𝑓 𝑖𝑛𝑐𝑜𝑚𝑒, 𝑜𝑢𝑡𝑝𝑢𝑡, 𝑒𝑚𝑝𝑙𝑜𝑦𝑚𝑒𝑛𝑡 𝑎𝑛𝑑 𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝑔𝑟𝑜𝑤𝑡ℎ.(7) 𝐷𝑦𝑛𝑎𝑚𝑖𝑐 𝑆𝑐𝑖𝑒𝑛𝑐𝑒: 𝑀𝑎𝑐𝑟𝑜 𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐𝑠 𝑠𝑡𝑢𝑑𝑖𝑒𝑠 𝑡ℎ𝑒 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑎𝑔𝑔𝑟𝑒𝑔𝑎𝑡𝑒 𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒𝑠 𝑎𝑛𝑑 𝑎𝑛𝑎𝑙𝑦𝑠𝑒𝑠 𝑡ℎ𝑒 𝑑𝑦𝑛𝑎𝑚𝑖𝑐 𝑛𝑎𝑡𝑢𝑟𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑒𝑐𝑜𝑛𝑜𝑚𝑦. 𝐼𝑡 ℎ𝑒𝑙𝑝𝑠 𝑢𝑠 𝑡𝑜 𝑠𝑡𝑢𝑑𝑦 𝑡ℎ𝑒 𝑝𝑟𝑜𝑔𝑟𝑒𝑠𝑠 𝑜𝑓 𝑎𝑛 𝑒𝑐𝑜𝑛𝑜𝑚𝑦 𝑖𝑛 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡, 𝑡𝑜𝑡𝑎𝑙 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛, 𝑡𝑜𝑡𝑎𝑙 𝑒𝑚𝑝𝑙𝑜𝑦𝑚𝑒𝑛𝑡, 𝑔𝑟𝑜𝑤𝑡ℎ 𝑒𝑡𝑐.
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What is the difference between micro and macro economy ? And it's char...
Difference between Micro and Macro Economy:
Microeconomics and macroeconomics are two branches of economics that study different aspects of the economy. While microeconomics focuses on individual economic agents such as households, firms, and industries, macroeconomics examines the economy as a whole. Here are the key differences between micro and macro economy:
1. Scope:
- Microeconomics: It deals with the behavior of individual economic units and how they make decisions regarding resource allocation and consumption.
- Macroeconomics: It studies the overall performance and behavior of the entire economy, including factors such as GDP, inflation, employment, and fiscal and monetary policies.
2. Level of Analysis:
- Microeconomics: It takes a bottom-up approach, analyzing the choices and interactions of individuals and firms.
- Macroeconomics: It takes a top-down approach, focusing on aggregate variables and their impact on the economy as a whole.
3. Variables:
- Microeconomics: It examines specific variables such as prices, wages, production costs, market equilibrium, consumer behavior, and firm behavior.
- Macroeconomics: It analyzes variables such as national income, aggregate demand, aggregate supply, inflation, unemployment, and economic growth.
4. Interdependence:
- Microeconomics: It recognizes that individual economic decisions and actions are interdependent and can have an impact on the overall economy.
- Macroeconomics: It considers the interdependence between different sectors and agents in the economy, understanding that changes at the macro level can influence individual economic agents.
Characteristics of Microeconomics:
- Focuses on the behavior of individual economic agents.
- Analyzes the allocation of resources in specific markets or industries.
- Examines how supply and demand interact to determine prices.
- Studies consumer behavior and how it affects the choices individuals make.
- Considers the behavior of firms, including production costs, market structure, and pricing strategies.
Characteristics of Macroeconomics:
- Focuses on the overall performance of the economy.
- Analyzes aggregate variables and their impact on the economy.
- Studies the causes and consequences of economic fluctuations such as recessions and booms.
- Examines the role of government policies in stabilizing the economy.
- Considers long-term economic growth and development.
In conclusion, microeconomics and macroeconomics are two distinct branches of economics that focus on different levels of analysis and variables. While microeconomics deals with individual economic units and specific markets, macroeconomics examines the economy as a whole, including aggregate variables and the impact of government policies.
Microeconomics and macroeconomics are two branches of economics that study different aspects of the economy. While microeconomics focuses on individual economic agents such as households, firms, and industries, macroeconomics examines the economy as a whole. Here are the key differences between micro and macro economy:
1. Scope:
- Microeconomics: It deals with the behavior of individual economic units and how they make decisions regarding resource allocation and consumption.
- Macroeconomics: It studies the overall performance and behavior of the entire economy, including factors such as GDP, inflation, employment, and fiscal and monetary policies.
2. Level of Analysis:
- Microeconomics: It takes a bottom-up approach, analyzing the choices and interactions of individuals and firms.
- Macroeconomics: It takes a top-down approach, focusing on aggregate variables and their impact on the economy as a whole.
3. Variables:
- Microeconomics: It examines specific variables such as prices, wages, production costs, market equilibrium, consumer behavior, and firm behavior.
- Macroeconomics: It analyzes variables such as national income, aggregate demand, aggregate supply, inflation, unemployment, and economic growth.
4. Interdependence:
- Microeconomics: It recognizes that individual economic decisions and actions are interdependent and can have an impact on the overall economy.
- Macroeconomics: It considers the interdependence between different sectors and agents in the economy, understanding that changes at the macro level can influence individual economic agents.
Characteristics of Microeconomics:
- Focuses on the behavior of individual economic agents.
- Analyzes the allocation of resources in specific markets or industries.
- Examines how supply and demand interact to determine prices.
- Studies consumer behavior and how it affects the choices individuals make.
- Considers the behavior of firms, including production costs, market structure, and pricing strategies.
Characteristics of Macroeconomics:
- Focuses on the overall performance of the economy.
- Analyzes aggregate variables and their impact on the economy.
- Studies the causes and consequences of economic fluctuations such as recessions and booms.
- Examines the role of government policies in stabilizing the economy.
- Considers long-term economic growth and development.
In conclusion, microeconomics and macroeconomics are two distinct branches of economics that focus on different levels of analysis and variables. While microeconomics deals with individual economic units and specific markets, macroeconomics examines the economy as a whole, including aggregate variables and the impact of government policies.
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What is the difference between micro and macro economy ? And it's characteristics also? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about What is the difference between micro and macro economy ? And it's characteristics also? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the difference between micro and macro economy ? And it's characteristics also?.
What is the difference between micro and macro economy ? And it's characteristics also? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about What is the difference between micro and macro economy ? And it's characteristics also? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the difference between micro and macro economy ? And it's characteristics also?.
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