Micro Vs Macroeconomics

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What is the difference between micro and macroeconomics?
There is a fundamental difference between micro and macroeconomics. Obviously, micro economics is the aspect of the economy that deals with how individuals, firms, industries, and other smaller units of the economy are affected. On the other hand, macroeconomics is normally concerned and concentrated in studying the general national economy of a country or how the aggregate economy behaves. Therefore, macroeconomics focus on matters relating to inflation, price level, importation, exportation, and the rate of unemployment in a country and how these elements affect the general economy (OpenStax, 2014). In a nutshell, micro economics deal with some aspect of the economy while macroeconomics
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When there is inflation in a country, the general level of prices for goods and services rise. This turn of event consequently makes the purchasing power of currency to fall. This is where the government comes in and attempt to reduce the level of inflation, and obviously avoid deflation, so as to ensure that the economy is running smoothly (O 'Sullivan & Sheffrin, 2004). So, inflation affects organizations as well as individuals and in order to rectify the effect of inflation on the aggregate economy, the government comes in by introducing both fiscal policy and monetary policy. This is a typical example of a macroeconomic…show more content…
According to Khemani and Shapiro (2003), “Sunk costs are costs which, once committed, cannot be recovered” (para 1). In other words, sunk costs are apparently, costs, which cannot be retrieved once incurred. A typical example of a sunk cost would be an investment on machines, which has the capacity to only produce a specific product. These machines cannot be useful if the product is no longer necessary or marketable. Therefore, the funds in acquiring the machines cannot be recovered. Conversely, a marginal cost is the additional cost incurred in the production of one more unit of a good or service. So the difference between sunk costs and marginal costs is that sunk costs cannot be recovered once incurred; it is in the past while marginal costs indicate futuristic resources spent to produce an extra unit of good or service (O 'Sullivan & Sheffrin,
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