For a long time , it was felt that their was no need to have seperate branches of economics and what happens at individual level will always works at agregate level , for countries etc. But the great economic depression of 1929 changed all of that and micro economic solutions were inadequate for solving the pressing issues of unemployment , low wages and falling of big banks .
now its a clear notion that economics has two branches.
Micro economics - it focues on how individual consumers, firms etc makes decision and it also explain why and how different goods are valued differently. for example my this blog is valued at 0 rupee since its free and also how individuals make financial decison relating to saving and investment and how market works at micro level.
Macro economics : macroeconomics tries to explain the situation facing the whole nation. it is concerned with foreign trade, fiscal policy, monetary policy, unemployment rates, the level of inflation and interest rates etc.
inspite of all these differences both micro economics and macro economics are closely related.
By
Lalan Choudhary
Rank 72 BPSC 66th
Comments
Post a Comment