What does macroeconomics and microeconomics study? Examples

How and what does macroeconomics and microeconomics study ? These are simple sciences. But in order to deal with them, you should give them enough time. And now let's get down to clarifying what macroeconomics and microeconomics are studying.

What is microeconomics?

This is the name for a part of economic theory, which deals with the study of economic processes at the level of individual subjects. The central problem for this science is the analysis of factors that affect pricing.

The founder of microeconomics is Alfred Marshall. He assured that the greatest interest in this science is represented by supply, factors and demand. He paid considerable attention to the patterns of their formation, analysis and problems. To better understand the topic, let's consider in parallel examples of microeconomics.

What and how?

Much of microeconomics depends on demand. This is how the value of the units bought from a given period of time differs from the prices at which the goods are sold. In other words, this is a quantitative expression of products that a consumer can afford for a certain amount of time. This interpretation was given by the English economist Thomas Malthus.

This situation is affected by a fairly large number of factors, the most important of which is the price. From this, the law of demand was derived: the higher the value of a particular commodity, the less it is bought. Pay attention to the specifics of microeconomics! She is not interested in the situation in general, but in specific indicators of certain products, individual enterprises and households.

So, microeconomics studies the tastes of consumers, fashion for goods, incomes, prices, seasonality, expectations and structural changes in the population. Not in general, but individual subjects of economic activity or markets. If we talk about examples of microeconomics, we can consider the activities of a particular enterprise or household - this will be the best illustration of what this science does.

What is macroeconomics?

She is studying the functioning of the national economic sector as a whole. Occurred during the 1930s. Its founder is John Keynes. The tasks of macroeconomics are as follows:

• Work to increase the level of real gross domestic product.
• Provide high employment of the population.
• Work on a stable or gradually growing price level.

The macroeconomic model helps to achieve these goals. Through them, the calculation of the provision of services and goods to the population is carried out. In addition, macroeconomic modeling allows the development of strategies for achieving low unemployment and high employment. These indicators are cyclical, but the task of the government and large economic operators is to optimize them at different phases.

But the most interesting macroeconomics is the state. At his disposal there are the necessary tools, due to which it can influence economic activity. The greatest attention is paid to:

1. Fiscal policy. In practice, it turns into the manipulation of fiscal rates to influence the current economic situation.
2. Monetary policy. It is carried out by manipulation in the financial system.
3. Foreign economic policy. A number of actions that are aimed at increasing net exports.
4. Trade Policy. This includes quotas, tariffs and other regulatory instruments that can affect exports and / or imports.
5. Income policy. Certain actions that are aimed at containing inflation by directive methods.

Features of macroeconomics

The specificity of this science is that it is widely used for aggregation, which makes it possible to treat the economy as a whole. As an example, the most commonly used indicators are the average price level, GDP, market interest rate, GNP, employment, inflation and unemployment, as well as other characteristics of the current state of affairs.

For convenience of studying and forecasting, besides modeling, methods are widely used also. So, the greatest spread was scientific abstraction, analysis and synthesis, economic and mathematical regulation, and others. So we have reviewed briefly what is studying macroeconomics and microeconomics.

Conclusion

Of course, to read these sciences, one article is not enough to read. Not enough simple information memorization. In this case, it is necessary to take care also of understanding it. But the fact that studying macroeconomics and microeconomics is very useful. This knowledge will be useful in life.

The first science provides information useful to those who want to make a political career. Thanks to them, you can successfully manage the state or just a very large company. Microeconomics will serve those who want to become an entrepreneur, but at the same time does not have hopes to create a huge transnational corporation.