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What is the difference between micro and macro economics? Give an example of a microeconomic phenomenon and an example of a macroeconomic one.
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1.What is the difference between micro and macro economics? Give an example ofa microeconomic phenomenon and an example of a macroeconomic one.
The difference is that :
-Microeconomics focuses on the individual such as a household , business and the decisions they
make towards their spending.
-Macroeconomics focuses on the economy as a whole , how the decision made by the
government can either benefit the people or cause them problems.
-An example of a Microeconomics phenomenon : if an individual chooses to pay for their debts
instead of going on holiday, they are sacrificing fun over priority to be out of debt.This can also
be viewed as an opportunity cost.
-An example of a Macroeconomics phenomenon : In the current economy ,the government could
help reduce unemployment by educating people on how they could manage their finances.The
government could also reduce the tax payment in order to help the economy to be boosted.
2. Go to the internet and find a recent article that you find that is relevant for this
section. Provide the link, and a summary of the article and discuss, in a few words,
why you found the article interesting
Article Link :
Catana , P. (2010) Phenomena and basic macroeconomic indicators for Measurements. Retrieved
from https://core.ac.uk/download/pdf/25961522.pdf
Summary - What i got from this article is that when used correctly macroeconomics can help the
country to fight inflation , reduce poverty and grow the economy.This article shows us how we
can calculate nominal national income especially if a country is interested in the production of
goods because the only way to produce more is to hire more.
-This article also shows us ways in which we can use macroeconomics to show discrepancies
between the structure of labour demand and the structure of labour supply.
-It also provides ways in which companies or firms can avoid being hit by inflation
indexing.Indexed meaning that a payment is automatically adjusted for inflation.
-This article also mentions that economists should look at trends and cycles in the
economy.There are fleeting trends and those should not have much focus however when looking
at cycle’s one should notice whether they are the same patterns or not and if so what causes
repeat cycles to damage or help the economy.
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