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Understanding the study of Economics
What is microeconomics?
The study of the individual parts of the economy, the household and the firm, how prices are determined and how prices determine the production, distribution and use of goods and services.
What is Macroeconomics?
The study of the sum total of economic activity, dealing with the issues of growth, inflation0 and unemployment and with national economic policies relating to these issues.
Let me assume that the study of economy is like looking at a forest. The government is the forest and the trees are either consumers or firms.…
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