Macroeconomics and Microeconomics

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Macroeconomics
how a whole economic system works using economic indicators (regional, national, or international)
Economic Indicators
-GDP
-Unemployment Rate
-Interest Rates
-Consumer Confidence level
Gross Domestic Product
an economic indicator that measures the amount of goods and services the US economy has produced during a specific time period
Unemployment Rate
measurement of how many people are without jobs
Interest Rates
how much money individuals or companies pay to borrow money
Consumer Confidence level
how comfortable people are with spending their money
Statistics
Info gathered from various indicators used by the governemnt to create a larger picture of the economy
Microeconomics
examines the individual parts of the economy and studies how people and businesses act within given economic conditions
Microeconomics is used by businesses to…..
-understand how to price their products
-to determine where they should sell
-to try and forecast how many they might sell
Individuals use microeconomics to…….
-understand why certain goods and services are priced the way they are and why they will buy some products but not others
Categories: Macroeconomics