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Dr. İhsan Sabri Erdoğan

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What is the difference between microeconomics and macroeconomics?
Tarih: 31-07-2018 12:10:34 Güncelleme: 31-07-2018 12:17:00

Dr. Ihsan Sabri Erdogan
economics engineer

Microeconomics and macroeconomics are two different branches that focus on the exploration of very limited resources. In both cases, it examines the demand for specific resources and the provision of these resources.

The British economist John Maynard Keynes, work published in 1936, General theory of interest and money (General theory of employment, interest and money), a book according to oluşturur.b the basis of modern macroeconomics 2, according to the World War II the economic theory, micro and macroeconomics.

Microeconomics is more about individual economies. For example, when a family or business shares limited resources, the decisions they make are microeconomics. In other words, microeconomics is a branch that examines individual markets. In addition, the professor at the University of Cambridge Keynes, Alfred Marshall's Principles of Economics published in 1890 (Principles of Economics) today, the book has made a major contribution to the microeconomic theory.

Macroeconomics is on a larger scale. Macroeconomics focuses on the country or the world economy. Macroeconomics is the branch that analyzes macroeconomic activity, growth, inflation and unemployment.

Microeconomics is a science that ignores private markets and economic segments. It examines topics such as consumer behavior, individual labor market and company theory.
Macroeconomics is the science in which a whole economy is studied. He examines aggregated variables such as supply and demand, national spending and inflation.
Macroeconomics - Macroeconomics

The name given to the branch of the economy that deals with the total size. Unemployment, inflation, total production and consumption, income distribution can be considered as main topics of macroeconomics. John Maynard Keynes. until 1930 and the company has considered it a new dimension in the industry level economy, education, the concept of total demand and total production issues of unemployment attempts, added to explain it. Some of the schools of thought in modern macroeconomics are:
Keynesian economy
Monetarism (monetarism)
New classic economy
New Keynesian economy
Supply side economy
Ultimately, microeconomics is associated with the following:
Supply and demand in individual and private markets.
Individual consumer behavior For example: theory of consumer choice.
Individual labor market - for example: set minimum wage.
Production and consumption related externalities.
The macroeconomics is connected with the following:
Monetary / fiscal policy. For example: How do interest rates affect the national economy?
Reasons for inflation and unemployment.
Economic growth.
International trade and globalization.
The reasons for differences in living standards and economic growth between countries.
State debt.
The biggest difference between microeconomics and macroeconomics is the extent. While microeconomics is much smaller, such as the individual economy or the fixed economy, macroeconomics is national or global. The change in the microeconomy also affects the macroeconomics. The opposite is the case.

As a result!
The differences between micro and macroeconomics
While microeconomics is a small economy, macroeconomics is a big economy.
Microeconomies work on the principle that sooner or later the market will create a balance. In macroeconomics, the global market may be in imbalance (recession or sudden explosion).
Macroeconomics attaches great importance to and works on empirical and scientific divergence. Microeconomics tends to work more theoretically.

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