Distinguish between macroeconomics and microeconomics
What will be an ideal response?
Macroeconomics is concerned with the behavior of the economy as a whole, while microeconomics is concerned with the choices of individual decision-makers, such as households and firms. Macroeconomics deals with aggregates, such as the total output of the economy or unemployment, while microeconomics deals with how many hours a person chooses to work or how many people a firm decides to hire.
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"Because of rent seeking, a monopoly may end up earning a normal profit." Is the previous statement correct or incorrect? Why?
What will be an ideal response?
The aggregate expenditure model focuses on the relationship between ________ and ________ in the short run, assuming ________ is constant
A) total income; real GDP; the price level B) total spending; real GDP; the price level C) total production; total income; real GDP D) total spending; real GDP; total income