Sunday, June 11, 2017

Modern approach of Economics


In modern approach economics is divided into two parts i.e. microeconomics and macroeconomics.
Microeconomics consists, determination prices, we divided the study of economics into consumption, production Exchange, etc. They are all covered by price theory. It is the study of individual units of the economy such as firm, industry, particular household, particular income, prices, wages, etc. It explains the process of factor of pricing and product pricing, etc.

Macroeconomics deals with the national aggregate such as national income, output, total consumption, saving, investment, total employment, multiplier, total money supply, inflation, deflation, trade cycles, etc. Increasing attention has been given to the analysis of the economic system as a whole. It studies aggregates or average of the entire economy.

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