Economics World Bank Questions
Microeconomics and macroeconomics are two branches of economics that focus on different aspects of the economy.
Microeconomics deals with the behavior and decision-making of individual economic agents, such as households, firms, and consumers. It examines how these agents allocate their resources, make choices, and interact in specific markets. Microeconomics analyzes the supply and demand of goods and services, the determination of prices, and the impact of individual decisions on the overall economy.
On the other hand, macroeconomics studies the economy as a whole and focuses on aggregate variables such as national income, unemployment rates, inflation, and economic growth. It looks at the broader factors that influence the overall performance of the economy, including government policies, fiscal and monetary policies, international trade, and global economic trends.
In summary, microeconomics analyzes individual economic units and their interactions in specific markets, while macroeconomics examines the overall behavior and performance of the entire economy.