ECO ASSINGMENT FROM MUHAMMAD AHMED UL HAQUE (20201 27684)

Difference between Microeconomics and macroeconomics

Microeconomics is the study of economics at an individual, group, or
company level. Whereas, macroeconomics is the study of a national
economy as a whole. Microeconomics focuses on issues that affect
individuals and companies.
Define Macroeconomics?
Macroeconomics is the study of whole economies--the part of economics
concerned with large-scale or general economic factors and how they
interact in economies.

State the major macroeconomic variables

There are 4 main macroeconomic variables that policymakers should try
and manage: Balance of Payments, Inflation, Economic Growth and
Unemployment. ... If the amount of goods that a country exports (X) is less
than the amount of goods that a country imports (M), there is a balance of
payments deficit.

macroeconomic variable like GDP

Gross domestic product (GDP) is the total monetary or market value of all
the finished goods and services produced within a country's borders in a
specific time period.

Macroeconomics inflation
Inflation is a sustained, generalized increase in the prices of goods and
services in an economy

Difference between nominal and real GDP

Nominal GDP is a macroeconomic assessment of the value of goods and
services using current prices in its measure. Nominal GDP is also referred
to as the current dollar GDP. Real GDP takes into consideration
adjustments for changes in inflation. ... Using a GDP price deflator, real
GDP reflects GDP on a per quantity basis.

Explanation of the circular flow of national income

The circular flow of income or circular flow is a model of the economy in
which the major exchanges are represented as flows of money, goods and
services, etc. between economic agents

Measurement of national income by:

Product Approach: In product approach, national
income is measured as a flow of goods and services. Value of
money for all final goods and services is produced in an
economy during a year. Final goods are those goods which are
directly consumed and not used in further production process.
National income: 
National income from the perspective of factor incomes. Under
this method, incomes received by all the residents of a country
for their productive services during a year are added up to
obtain the national income.
Expenditures 
This method measures national income as sum total of
final expenditures incurred by households, business firms,
government and foreigners.