First of all, the macroeconomics developed by John Maynard Keynes treats the economy as a whole. The total size of issues such as production, consumption, investment, income, employment, and savings are interests macroeconomics. It produces conclusions and solutions related to these issues. Macroeconomics examines the economy in a general way, a wide way. The biggest difference between macroeconomics and microeconomics is that it examines the economy completely. Topics in macroeconomics include total production, consumption, inflation, growth, supply, demand, unemployment and distribution of income.
There are two basic theories in macroeconomics. The first is the Keynesian economics and the second is the new classical economy. Keynesian economics; in line with the demands of the economy’s mobility has occurred while the new classical economy is stressed that the ability to evaluate the economy is passed to know the supply of money in the financial market.
Secondly, microeconomics examines the distribution effectivity . For example, we are going to produce something, what we are gonna produce, for who, when, why, why are they going to buy this product. In microeconomics, the cost of supply, demand, and opportunity are examined in how firms affect each other within the framework of decisions made by consumers.
Microeconomics tries to understand and analyze the behavior of individuals in the fields of production, consumption, distribution, investment, and savings in daily life. He also deals with microeconomics price theory and rational use of resources.
What is the difference between macroeconomics and microeconomics?
Macroeconomics, causes of inflation and unemployment, monetary/financial policies, economic growth, the standard of living among countries and the reasons for economic growth, international trade and globalization, the government because of interesting in debt and the economy as a whole. Microeconomics is based on externalities of production and consumption, individual consumer behavior, supply and demand in individual and private markets.
For example, what is the impact of microeconomics on the national economy of an individual’s economic decisions? The question is the subject of macroeconomics.