1.2 Microeconomics and Macroeconomics

Published by admin on

Microeconomics
focuses on the actions of individual agents within the economy, like households, workers, and businesses

the branch of economics that focuses on actions of particular agents within the economy, like households, workers, and business firms

Macroeconomics
looks at economy as a whole, focuses on broad issues such as growth of production, the number of unemployed people, the inflationary increase in prices, government deficits

the branch of economics that focuses on broad issues such as growth, unemployment, inflation, and trade balance

Monetary policy
involves policies that affect bank lending, interest rates, and financial capital markets
,is conducted by a nation’s central bank
in US it is Federal Reserve

policy that involves altering the level of interest rates, the availability of credit in the economy, and the extent of borrowing

Fiscal Policy
economic policies that involve government spending and taxes
,is determined by a nation’s legislative body
Categories: Macroeconomics