Macroeconomics deals with while microeconomics deals with


More about Essay on Econ 102 Quiz

Economists monitor the ratio of a country's' debt to the gross domestic product.

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When debt becomes too great a percentage of the GDP, interest payments increase and the money government spends is diverted to debt financing rather than other options. Trade policies are an important issue in the study of macroeconomics.

The Difference between Microeconomics and Macroeconomics

Trade agreements dictate what type of freedoms or restrictions governments place on economic trade between countries. Trade policies include the levying of tariffs, currency exchange and quotas. Employment is a large macroeconomics category that includes everything from unemployment figures to productivity. In the United States, the Bureau of Labor Statistics tracks employment-related statistics and trends. Some key figures that help track the employment health of a nation include consumer price index, unemployment rate, average hourly earnings, productivity, producer price index and employment cost index.

Economists theorize that employment levels are related to what consumers are willing to spend; aggregate output and aggregate expenditure are closely related and dictate how much hiring occurs assuming hat there is a closed economy with no government involvement or foreign trade. Inflation occurs when prices across a market increase. This causes the value of money to decrease and people do not have as much purchasing power as they did before. Governments will often try to control inflation by lowering interest rates. When it is cheaper for businesses to borrow money, their costs decrease, allowing them to sell things at a lower price.

Other potential causes of inflation include a depreciation in the exchange rate, taxes, government spending, uneven economic growth in other countries, an increase in the cost of supplies and an increase in labor costs.

MICRO AND MACRO ECONOMICS - The Lawyers & Jurists

As a professional writer since , Bridgette Redman's career has included journalism, educational writing, book authoring and training. However, if you're only planning on taking one of the two, pick whichever you find more interesting. The University Mental Health Crisis. The Economic Effects of Climate Change.


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Macroeconomics vs Microeconomics

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