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Microeconomics is a branch of economics that focuses on the behaviour of individuals and firms in the market economy. It examines how people make choices about what goods and services to buy, how much to work and save, and how firms decide what to produce and how much to charge for their products.
It also explores the workings of different types of markets, such as competitive markets, monopolies, and oligopolies, and how prices and quantities are determined in these markets. Microeconomics is concerned with understanding how individual decisions and market interactions affect the allocation of scarce resources and the distribution of income and wealth.
Macroeconomics, on the other hand, is concerned with the overall performance of the entire economy. It examines the big-picture factors that influence the level of economic activity, such as inflation, unemployment, economic growth, and international trade.
Macroeconomists study the aggregate behaviour of households, businesses, and governments, as well as the interactions between these groups. They use models to explain how changes in interest rates, government spending, and taxation affect the economy. Macroeconomics is also concerned with understanding the causes of business cycles, which are the ups and downs of economic activity that occur over time.
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