Distinguish between the following
Slicing method and Lumping method
ANSWER:
Basis of Difference
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Slicing Method
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Lumping Method
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1. Process
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It splits up the entire economy into small individual units.
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It splits up the entire economy into big lumps (sectors).
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2. Used in
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It is used in microeconomics for intensive study.
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It is used in macroeconomics for intensive study.
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3. Variables used in the method
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It uses micro variables, for example, individual income and individual output.
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It uses macro variables, for example, aggregate output and national income.
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