Give reasons or explain the following statements
5) Macro-Economics is different from Micro-Economics.
ANSWER:
Macroeconomics is concerned with large sections of the economy or the economy as a whole. It is a branch of economics that studies economics activities of various economic spheres and analyses economic situations and economic problems of the economy as a whole. Microeconomics, on the other hand, studies only one consumer or one producer. In other words, while microeconomics studies individual economic units, on the other hand, macroeconomics studies aggregates. Accordingly, microeconomics is based on partial equilibrium analysis, on the other hand, macroeconomics is based on general equilibrium analysis. In this regard, it can be said that macroeconomics has a wider scope than microeconomics.
