Introduction To Applied Economics 3
Introduction To Applied Economics 3
Introduction To Applied Economics 3
ECONOMICS
MACROECONOMICS MICROECONOMICS
The prefix “micro” is
From the Greek prefix
derived from the Greek
“makro”
word “micros” meaning
meaning LARGE
SMALL.
MACROECONOMICS
It deals with the averages and aggregates of the entire economy
such as NATIONAL INCOME, AGGREGATE OUTPUT,
AGGREGATE SAVINGS, etc.
It has a wide scope and interprets the economy of a country as a
whole
It is also known as the INCOME THEORY because it explains the
changing levels of national income of an economy during a
period of time.
It deals the circular flow of income and expenditures between
sectors of the economy.
It helps in developing policies appropriate resource distribution
at economy level such as inflation, unemployment level, etc.
MICROECONOMICS
Microeconomics Macroeconomics
SUBJECTS Economic Behavior Economic Behavior
-Bill Gates
Founder of Microsoft