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Answer» Following table shows the distinction between microeconomics and macroeconomics | Basis | Microeconomics | Macroeconomics | | (i) Unit of study | It is the study of individual economic units, e.g., a consumer, a producer etc. | It is the study of economy as a whole or its aggregates. | | (ii) Tools | Its main tools are demand and supply of a commodity/factor of production. | Its main tools are aggregate demand and aggregate of the whole economy. | | (iii) Central problems | Its emphasis is on the price determination and allocation of resources. | Its emphasis is on the determination of national income and employment. | | (iv) Subject matter | It deals with the prices of individual commodities and individual factors of production. | It deals with the general price level. | | (v) Examples | A consumer’s equilibrium, individual demand, pricing of goods. | Equilibrium of national income, aggregate demand, pricing of foreign exchange. |
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