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Give one example showing the difference between Microeconomics and Macroeconomics. Give one example each of Micro and Macroeconomics. |
| Answer» The main difference is that micro looks at small segments and macro looks at the whole economy. But, there are other differences. Classical economic analysis assumes that markets return to equilibrium (S=D). If demand increases faster than supply, this causes price to rise, and firms respond by increasing supply.Microeconomics deals with an individual product, firm, household, industry, wages, prices, etc. Conversely, Macroeconomics deals with aggregates like national income, national output, price level, total consumption, total savings, total investment, etc. | |