Differences Between Micro And Macroeconomics

972 Words4 Pages
Answer the following questions to the best of your ability. 1. What is the difference between micro and macroeconomics? Give an example of a microeconomic phenomenon and an example of a macroeconomic one. The difference between comes from the scoop we are looking to the economic situation (that why micro and macro), the macro-economy is focusing on the situation and action on the individual agent when the macro-economy is focusing and the evolution and situation of the whole economy. (Taylor,T, 2016,Principles of Economics, Rice university Houston texas, ch 1.2) The micro-economics situation will influence the whole situation, because a change in the politic of a single business will have a lot of repercussions that will influence the whole situation, as much that the evolution of the whole will change the capacity of each individual agent to take some decision. For example, as microeconomic phenomena, the price of the beer that AmBev will sell in Brazil is determining the price elasticity who will be specific to the local agent who are the Brazilian population. It’s micro and very specific phenomena. But this micro-decision will affect the macroeconomic, a successful process of production and price setting will mean production efficiency, and this will influence positively the GPD, unemployment rate and inflation rate. Conversely, a macroeconomic phenomenon could be the median national income available. Of course, the price paid in wage and set to sell by an

More about Differences Between Micro And Macroeconomics

Open Document