Economics Essays

 

Economics

Macro-economists study aggregated indicators such as Gross domestic product (GDP), unemployment rate, and price indices to understand how the whole economy functions. Macroeconomists develop models that explain the relationship between factors such as consumption, unemployment rate, rate of inflation, investment, and international trade. 

Micro-economics is concerned with the behaviour of individual households and firms in making decisions on the allocation of limited resources. Typically, it applies to markets where goods or services are bought and sold. Microeconomics examines how these decisions and behaviours affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the quantity supplied and quantity demanded of goods and services.

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