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Micro & macroeconomics
This document provides an overview of microeconomics and macroeconomics. Microeconomics is defined as the study of individual decision making and the allocation of resources at the individual level. Macroeconomics examines the behavior of the overall economy, including metrics like gross national product, unemployment, and economic growth at the national level. The document outlines some key differences between microeconomics, which focuses on supply and demand and prices, and macroeconomics, which analyzes unemployment, inflation, and taxation at the aggregate level.
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Micro & macroeconomics
- 1. By Victoria Rock Macroeconomics ECON224-1104B-22 Prof. Hector Morales November 27, 2011
- 3. Microeconomics The studyof decisions people make. The allocation of resources and price of goods Taxes and government regulations Supply and demand
- 4. macroeconomics Study the behavior of the economy as a whole. Looks into the Gross National Product. Unemployment and national income is affected. Rate of growth and price levels.
- 5. MICROECONOMICS MACROECONOMICS
- 8. MICROECONOMICS MACROECONOMICS DEPRESSION INCREASE OR DECREASE IN TAXATION INFLATION PRICE CHANGES DUE TO SUPPLY AND DEMAND UNEMPLOYMENT BEHAVIOR OF FIRMS SUCH AS A COUNTRY’S MONOPOLIES ECONOMICAL GROWTH
- 9. Arnold C. Harberger.2009.Microeconomics. The Concise Encyclopedia of Economics. Library of Economics and Liberty. Retrieved November 26,2011 from: http://www.econlib.org/library/Enc/Microeconomics.html Mike Moffatt. What is Microeconomics?.Economics.About.com. Retrieved November 25, 2011 from: http://www.economics.about.com/cs/studentresources/f/microeconomics.htm Krugman & Wells. 2009.Economics. Chapter 22: Macroeconomics: The Big Picture. New York. Worth Publishers. pp 569-587 Krugman & Wells. 2009. Economics. Chapter 23: Tracking the Macroeconomic. New York. Worth Publishers. pp 589-614
Editor's Notes
- #3 Introduction Hello and Welcome! My name is Victoria Rock and I am here today to go over the differences between microeconomics and macroeconomics, as well as provide real-world examples of both through personal and hypothetical points of view. We will also show how micro- and macroeconomics work together.
- #4 Microeconomics Microeconomics is the study of decisions that individuals, families, and business personal make regarding the allocations of resources and prices of goods and services. It also involves taking into account taxes and regulations created by government, as well as supply and demand of products and services along with other factors that determine price levels in individual markets.(About.com)
- #5 Macroeconomics Macroeconomics how ever is the study of the economy as a whole. It looks into the Gross National Product and the effects it has on unemployment, national income, rate of growth and price levels. It’s focus is on the performance, structure, behavior and decision-making of the entire economy on a national, regional, and globel economy.(Krugman, 2009)
- #6 Examples of Both Micro- & Macroeconomics Phenomenon Microeconomics looks at what a particular firm does to maximize production, while maintaining a low price to compete in their market industry.(Moffatt) A good example of Microeconomics Phenomenon is Labor economics, which is built largely on the analysis of the supply and demand for labor of all different types.(Harberger, 2008) Macroeconomics looks at how increase and decrease with exports affect the Nations Capital Account, or how the GDP is affection the unemployment rate.(Krugman, 2009) An example of Macroeconomics Phenomenon might be that of a CEO of a firm in which they might face would be if the government increases interest rates. If interest rates go up than more people are going to save money either in banks or commercial papers and selling their financial assets thus causing stock prices to fall.(Krugman, 2009)
- #7 The Microeconomic decision I had to make. Becoming unemployed due to an accident two years ago caused my savings to quickly deplete leaving me with no choice but to file for food and medical support for myself and my 14 year old daughter. Being that I qualified for both, it helped me on not spending what little money I had coming in on food and medical cost. Also due to the condition of my back because of the accident, my doctor informed me that I could no longer work standing for 8 hours a day like I had for the past 32 years being a cashier. I quickly realized that in order for me to support my family I needed to chance careers, so I decided to apply for college here at AIU Online and study business with a focus on Accounting so that I can get a degree and go back to work as an accountant thus being once again able to provide for my family with out state assistants.
- #8 A Macroeconomic event that has impacted my life. One way that Macroeconomic events has impacted my life was when the government decided not to give a cost of living increase in Social Security Disability. While as basics needed to sustain a decent life, such as the price of food and transportation, electricity, etc went up, my ability to afford them was dropping daily causing the basics to be harder to sustain.
- #9 Closing Although both micro- and macroeconomics seem different, in fact they are actually interdependent of each other. Microeconomics takes a bottom-up appproach while Macroeconomics takes a top-down approach. You could say they complement each other due to the overlapping issues between them.