Question

What is the difference between Microeconomics and Macroeconomics?

a. Micro focuses on individuals and businesses, while macro focuses on the economy as a whole
b. Micro focuses on small products and macro focuses on large products
c. Micro is about lower income people and macro is about wealthier people
d. Micro is about small businesses, while macro is about large businesses

Answer 1

Microeconomics focuses on individuals, firms, and industries, while macroeconomics looks at the economy as a whole and focuses on goals like growth in the standard of living, unemployment, and inflation. Macroeconomics has two types of policies: monetary policy and fiscal policy.

Step-by-step explanation:

Microeconomics and macroeconomics are two different perspectives on the economy. The microeconomic perspective focuses on parts of the economy: individuals, firms, and industries. The macroeconomic perspective looks at the economy as a whole, focusing on goals like growth in the standard of living, unemployment, and inflation. Macroeconomics has two types of policies for pursuing these goals: monetary policy and fiscal policy.