Distinguish between the following Slicing method and Lumping method

Distinguish between the following

Slicing method and Lumping method

ANSWER:




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

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