Microeconomics and Macroeconomics
Questions relating to what is produced and how, and what is consumed
and by whom, fall within the realm of microeconomics.
Microeconomics is the study of the causes and consequences of the
allocation of resources as it is affected by the workings of the price system
and government policies that seek to influence it. Questions relating to
the idleness of resources and the growth of the economy’s productive
capacity fall within the realm of macroeconomics. Macroeconomics
the study of the determination of economic aggregates, such as total
output, total employment, and the rate of economic growth.