- 3 Main differences between microeconomics and macroeconomics
- 1) Inflation and product prices
- 2) Gross Domestic Product and consumption
- 3)
The main difference between microeconomics and macroeconomics are the dimensions and scales of their study. Microeconomics studies small levels such as people.
Macroeconomics studies larger levels, at the level of regions, countries, continents or the entire world.
Currency is a fundamental part of the economy
For several millennia, man began to exchange goods and services for money. In this way the economic processes arose, referring to money and trade, which are studied by the economy.
Within economics, there are subclasses of disciplines for deeper and more detailed studies. Thus, microeconomics and macroeconomics were formed as specific disciplines.
3 Main differences between microeconomics and macroeconomics
There are other disciplines such as econometrics that measure and account for economic processes.
Today the economic issue has an important weight in the agenda of societies, because they seek to promote the economic processes of each country with the advance of time.
1) Inflation and product prices
Macroeconomics studies for example inflation, which consists of how the prices of products, goods or services increase in a wide region such as a continent, a country or a state of a nation.
Microeconomics, for its part, in the case of inflation, would study how consumers behave in relation to the rise in prices. Thus, it focuses on a small dimension.
Microeconomics would study what product, good, or service people would have more or less access to if prices rise due to inflation.
2) Gross Domestic Product and consumption
This refers to all the money that is produced by a country in a certain period of time.
Macroeconomics would come into play by studying how much was produced in a given period of time. Normally, it is measured by year and is compared with the previous one, to know how the growth or decrease could be for the following year.
In addition, macroeconomics would study from which sectors of the country's economy all that wealth generated in that period of time comes.
For its part, microeconomics would study the distribution of this gross domestic product for each inhabitant of the country.
An example would be in which areas of their life people are spending money in a certain period of time and if there is a difference with previous periods or in other countries.
3)
This aspect of the economy consists of the flow of money, goods or services between one or several nations around the world.
Macroeconomics would study all this phenomenon of the flow of money between several countries, which countries are increasing the exchange or in which it is decreasing. Also, the export and import levels are studied within this exchange.
On the other hand, microeconomics would study the expenses or commercial behavior of the citizens of a country with respect to the purchase or sale of imported products or if, on the contrary, they are preferring national options.
- Macroeconomy. Encyclopædia Britannica. Recovered from the site: britannica.com
- Microeconomy. Encyclopædia Britannica. Recovered from the site: britannica.com
- International Trade. Encyclopædia Britannica. Recovered from the site: britannica.com
- Inflation. Encyclopædia Britannica. Recovered from the site: britannica.com
- Image N1. Author: Steve Buissinne. Recovered from the site: pixabay.com