Microeconomics VS Macroeconomics INTRODUCTION Microeconomics VS Macroeconomics How does Microeconomics Differ from Macroeconomics? Prepared by NHMS, 2012

INTRODUCTION Microeconomics examines the behaviour of individual economic entities: firms and consumers. How do individuals make consumption decisions? How do firms make profits and price their goods and services? The focus of microeconomics is markets: wage markets, the market for gasoline, rent markets, etc. Micro Macroeconomics is the study of the economy as a whole. Macroeconomics asks questions like: Why does the U.S. economy generally experience higher rates of growth than European economies? The rate of growth in China, employment rate? What causes inflation? What effect does the national debt have on economic growth? etc. Macro Prepared by NHMS, 2012

TOPICS IN MACROECONOMICS Chapter 20 – Introduction to Macroeconomics-concepts Chapter 21 – Measuring National Output and National Income Chapter 22 – Unemployment, inflation, and Long-run Growth Chapter 23 – Aggregate Expenditure and Equilibrium Output Chapter 24 – Government and Fiscal Policy Chapter 25 – The Money Supply and the Federal System Chapter 26 – Money Demand and the Equilibrium Interest rate Chapter 27 – International Trade, Comparative Advantage and Protectionism