Microeconomics V/S

Macroeconomics
BACKGROUND, DIFFERENCE AND IMPORTANCE IN DAILY LIFE
Background Of Microeconomics
By:Junaid Ali

 As early as 18th century, economists studied the decision making processes

of consumers. This is when classical economics or microeconomics started.
With the help of different personalities like Nicolaus Bernoulli, Laissez Faire,
Adam Smith, Alfred Marshall, the theory of microeconomics grew bigger
and helped us in our daily life.
Background Of Macroeconomics
By: Junaid Ali

 In 1930’s, when the great depression took over the global economy,
aggregate demand was low, production was not up to par, people were
being unemployed, the whole economy collapsed and classical
microeconomic theories could not give the reason that why there is
depression and output gap for such a long time. So, in 1936, J.M. Keynes
produced his book “The General Theory Of Employment, Interest And
Money”. He examined why microeconomic principles were not helping in
macroeconomics and gave solutions. So, in 1936, macroeconomics
developed as separate strand with in economics.
 Difference Between
Macroeconomics And Macroeconomics

V/S
 Junaid Ali

Microeconomic View Macroeconomic View

 The micro view is of a single  The macro view is the pattern formed
participant or a single firm and the by the joint action of all the individuals
action he/she is taking. participating in the entire display.
 Amir Khoso

Microeconomic View Macroeconomic View

 It studies individual income, cost of  It is concerned with national income,
production, consumer behavior GDP, GNP, Inflation Rate, Aggregate
regarding the price of the goods. Demand and Aggregate Supply etc.
 Pooja Maheshwari

Microeconomic View Macroeconomic View

 It deals with the flow of various factors  It deals with the circular flow of
of production from a single owner to a income and expenditure between
single user of those resources. different sectors of the economy.
 Mahesh

Microeconomic View Macroeconomic View

 It is known as price theory because it  It is known as aggregate theory. It
helps in determination of price on the helps in the determination of income
basis of individual demand and and employment with the help of
supply. aggregate supply.
 Kanwal Gul

Microeconomic View Macroeconomic View

 It discusses how equilibrium of a  It is concerned with the determination
consumer, a producer or an industry is of equilibrium level of income and
attained. employment in the economy.
 Kaleemullah Memon
Microeconomic View
 It is based on the assumption of
“ceteris peribus” (it means other things
remaining constant) to explain various
laws like law of demand and law of
supply.
Macroeconomic View
 Macroeconomics uses the technique
of general equilibrium analysis that
studies aggregate economic variables
and the relations between them.
Importance Of
Microeconomics And
Macroeconomics
POOJA MAHESHWARI
KALEEMULLAH MEMON
Importance Of Microeconomics

 Microeconomics is essential as it helps in determining the best use of our

limited resources to get maximum profit and satisfaction.
Importance Of Macroeconomics

 Macroeconomics is important because it tells us about the overall situation

of economy and the problems it is facing along with their solutions.
“ Economics is everywhere, and
understanding economics can
help you make better decisions
and lead a happy life.
TYLER COWEN ”
THANK YOU