Macro and microeconomics are important sciences in terms of studying ongoing business processes. What are they learning? How? These, as well as a number of other questions, will be answered in the framework of the article.
general information
What is macro / microeconomics? The theory in this regard has a clear separation. Macroeconomics is studying the functioning of the economy of a country or sectors as a whole. For her interest are such general processes as growth, unemployment, government regulation, budget deficits and so on.
Macroeconomics operates with terms such as aggregate supply and demand, GNP, GDP, balance of payments, markets for goods, labor and money. Aggregated indicators are widespread.
While microeconomics is studying the behavior of economic agents during the implementation of production, distribution, exchange and consumer activities. That is, the main difference is at what level they work. And now let's take a closer look at what macro- and microeconomics are.
Overall plan
Macroeconomics is studying the patterns of functioning and development of the economic sector of a country or several states. For her, unlike microeconomics, individual markets and pricing specifics for different types of competition are not of interest. When working on the macroeconomic plan, there is a need to abstract from differences and reliance on key points. In this regard, interesting points come up.
Research Features
The emphasis will be on macroeconomics, although micro-economics will also be given attention to some points. So:
- Macroeconomic analysis uses aggregated values. An example is the GDP indicator. Whereas microeconomics is interested in output by a separate enterprise. Also for macroeconomics, the level of prices in the economy is of interest, not the cost of specific goods. Aggregated aggregates combine both producers and buyers.
- Macroeconomics during the analysis does not take into account the behavior of individual economic entities, which are households and firms. Whereas for microeconomics they are independent.
- When working at the state or industry level, there is a constant expansion in the number of entities that create the economy. Macro and microeconomics in this case include foreign consumers and producers. True, when using microanalysis tools, external economic factors, as a rule, are not taken into account.
About macroeconomics
This science is not just a mechanical sum of all elements of the economic sector, in which there are various local regional, resource, industry markets and many consumers and producers. Macroeconomics is also a combination of economic ties that connect and define individual elements of the national economy into a single whole. Indicators of this are:
- The presence of a division of labor between large areas of production (not only within the entire economy, but also in individual regions).
- Labor cooperation, which ensures production and the relationship between different structural units.
- The existence of a national market, which represents the whole economic space of the state.
Macro- and microeconomics differ also in the fact that the first foundation is material wealth. In a broad sense, this term refers to the totality of all the resources that are in the country and what are needed in order to ensure the production of necessary goods. For this, a specific economic base must be present, which can provide for existing national interests and needs.
This largely depends on the current policy and existing infrastructure. It is worth noting the role of the financial market in macro and microeconomics. With the right state policy and honesty of the people who use its services, you can get a significant increase in the economy. And vice versa - if you act in connivance, then the negative effect will be extremely strong.
About microeconomics
She is engaged in research at the level of individual enterprises and households. So, with the help of microeconomic tools, one can study why consumers choose a certain set of benefits, buy from a particular company, how prices are formed and how cost-effective the market methods are.
So, considerable attention is paid to aspects of the organization of production and marketing. At the same time, the needs of households are studied, the specifics of their activity in specific markets, interest rates in banking institutions for certain needs - that is, all that is the building blocks of the modern economy.
