Answer to Question #91614 in Macroeconomics for king

Question

the aggregation of what happens at micro economic level is what what constitute macro economy would it be possible for what happen to macro level to differ from how an agent would react to some stimuli at micro level ?

Answer 1

Economics covers a lot of ground and this can be divided into two sections: Microeconomics and Macroeconomics. Microeconomics deals with the actions of a personal agent within the economy whereas macroeconomics focuses on the economy as a whole. Microeconomics and macroeconomics are not separate subjects, but rather complementary perspectives on the overall subject of the economy. Whether one is looking at economics, the macro and micro insights must blend with each other. By studying microeconomics one will be able to understand the overall subject of economics. Conversely, by understanding the macroeconomics insights about the overall subject will help one explain the concepts of microeconomics.