Micro Economics And Macro Economics Essay
Economics is defined as “a study which its scope of influence comprises large number of activities.” The study has two sub divisions namely micro economics and macro economics. Micro economics is the methods through which things takes place within the system, it deals in the very micro level. The main focus of micro economics is on theories, mainly regarding behavioral patterns. Its major concern is on how things should function perfectly. For instance, Demand and supply relationship, Consumer behavior theory, pricing theory .etc. Macro economics on the contrary, considers the broader aspects/features of an economy as a whole rather than taking individual markets, taking into consideration facts and figures for study. The term macro means large. The study takes aggregates such as GDP, unemployment rates and price indexes for a deeper understanding of the society. Macro economics includes us of real life cases such as Labor problems, Economic welfare, Industrial growth, Unemployment and, such.
It is a study involving the usage of real life examples and cases, for example Unemployment, Labour Problems, Economic Welfare, Industrial Growth, and so forth.
For this discussion we shall take into consideration a micro economic task which has been of lot significance in the recent period. The topic we have taken is exchange rate. The term exchange rate means “the rate at which one currency is exchanged for another.” Different countries have different exchange rates,…