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The difference between macro and micro economics_ and contact

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					The difference between macro and micro economics, and contact
Economic model can be used to analyze the decision-making in many areas. We
classified as micro-economics in some areas, while the other areas included in
macroeconomics. Micro-economics (microeconomics) of households and businesses
to make choices, how they interact in the market, and how the Government tried to
influence their choice. Microeconomic issues, including interpretation of how
consumers respond to price changes and how firms decide to charge what price.
Microeconomics is also involved in policy issues, such as the analysis of reducing
underage smoking of the most effective way of marketing a new prescription drug
approved by the costs and benefits of reducing air pollution and the most effective
way.
Macroeconomics (macroeconomics) of the economy as a whole, including inflation,
unemployment and economic growth in such problems. Macroeconomic issues,
including explaining why the economy experienced a recession and rising
unemployment period, and why some economies in the long term than other
economies grow faster. Macroeconomics policy issues also involved, such as
government intervention can reduce the severity of recession.
Between microeconomics and macroeconomics and the distinction is not strictly fixed.
Many micro-economic situation which involves the economy to macroeconomic level.
For example, business investment in new machinery and equipment, help to
determine the overall level of economic growth - a macroeconomic problem. But to
understand how business decision to purchase new machinery and equipment, we
need to analyze the incentives faced by individual firms - and this is a
micro-economic issues.
        ?Economics is the study of economic behavior and economic operation of the
laws of learning. Economic activity is an organic whole, the macro and micro
economics that do not have the division. This is the history of the development from
an economic path that can be clearly seen. For example, in the classical school and
heavy agricultural school there, William Petty, Adam Smith and David Ricardo not
only of the national income, national wealth, the total currency in circulation and
other issues, but also studied the field of micro-economics value and distribution,
even Quesnay, also in the field of micro-economics "pure
product" had detailed discussions on the issue. Only later, with the
development of division of labor, in order to facilitate the study and in-depth, it
appeared in macroeconomics and microeconomics of the division. This, as our
economist Fan Gang (1997) points out, "the initial stages of the history of
economics, the theory is very comprehensive, but also because of this, the initial
phase of the economics are more naive; economics branch The development is a step
forward; It is this division of labor theory of depth and the deep, more advanced
synthesis, providing a new basis. "

      ?English is a micro "micro", which means
"small." Microeconomics is a single economic unit for the study,
by studying the economic behavior of individual economic units and the
corresponding individual values of economic variables to explain the decision of the
price mechanism to solve the configuration problem of social resources. English is the
macro "macro", which means "big."
Macroeconomics is the so-called as the research object is the entire national economy,
by studying the decisions and changes in economic output, to illustrate the full
utilization of community resources.

 ?The difference between the two is obvious, mainly:

 ?(1) different research objects. Microeconomics is the objective of a single economic
unit, such as families, firms and so on. As the American economist J · Henderson
(J · Henderson) said, "this individual households and firms optimize
behavior unit laid the foundation for microeconomics." The
macroeconomics of the study is the economy, look at the whole economic way and
laws, in terms of aggregate analysis of economic issues. As Samuel Johnson said,
macroeconomics is the "production, income, price level and
unemployment to analyze the behavior of the entire economy." U.S.
economists E · Shapiro (E · Shapiro) stressed the "macroeconomics study
the functions of the national economy as a whole. "

 ?(2) address different issues. Microeconomics is the allocation of resources to solve
the problem, namely, what to produce, how to produce and for whom the problems of
production to achieve the maximization of individual benefits. Macroeconomics put
the allocation of resources as the established premise, the use of resources within the
community, so as to maximize social welfare.

 ?(3) study methods. Micro-economics is a content analysis, that the individual values
of economic variables to determine. The macroeconomics is the total amount of
research methods, namely, to reflect the economic performance of the economic
variables of the decision, analysis of changes in their relationship. The total includes
two types, one is the sum of the amount, and the other is the average amount.
Therefore,     macroeconomics,       also    known       as     "the       total
economy."

(4) different basic assumptions. The basic assumption of microeconomics is the
market clearing, completely rational, full information, that the "invisible
hand" can be adjusted freely to optimize allocation of resources.
Macroeconomics is assumed that the market mechanism is imperfect, government is
able to regulate the economy through the "visible hand" of
market mechanisms to correct deficiencies.

(5) central theory and the basic content of course, different. Microeconomic theory is
the center of price theory, including theory of consumer behavior, production theory,
distribution theory, general equilibrium theory, market theory, property rights theory,
welfare economics, management theory. The center of macroeconomic theory is the
national income determination theory, also including unemployment and inflation
theory, the economic cycle and economic growth theory, open economy theory.

 ?Although the microeconomics and macroeconomics was significantly different, but
as different branches of economics, common ground is clear: only from different
perspectives on the analysis of economic phenomena, are used in empirical analysis,
which regarded the social economic system as established, does not involve the
economic impact of institutional factors, and institutional economics to distinguish.
On the other hand, macroeconomics, microeconomics prior to the emergence,
development was more mature, and thus is the basis of macroeconomics; the two
complement each other, penetrate each other, came together to form the basic
principles of economics.

 ?On the microeconomic foundation of macroeconomics issues, has been the subject
of intense debate, there need to say something more. Macroeconomic theory, whether
Keynesian or monetarist, regard the micro-economic theory to explore and come to
some of the principles to be accepted as an established premise, such as the value of
the formation of the problem, based on income distribution issues are not included in
their theories. In other words, macroeconomics has been the lack of their own
micro-economic basis. Looking for micro-based macroeconomic theory has always
been assiduous in the work of researchers.

  ?(1) For the microscopic foundation of Keynesian macroeconomics issues, there are
two views: Samuelson ago proposed a new microscopic theory of classical economics,
that the marginal utility theory of value and the marginal productivity theory of
distribution, as Keynesian macroeconomics microscopic foundation of science, which
is called the "New Neoclassical Synthesis"; addition to Kaldor,
Joan Robinson, who led the Keynesian view that, from Ricardo's value
theory and distribution theory to find the microeconomic foundation of
macroeconomics , to recognize the value of their objective, material basis, the
allocation can not be recognized from the specific historical conditions and ownership
of the factors to examine. Micro-foundation of Keynesian economics issues, in fact,
the two branches of the Keynesian - New Neoclassical Synthesis and the New
Cambridge School - dispute, the controversy still continues.

 ?(2) monetarist macroeconomic theory of micro-economics based issues, monetarist
colleagues, in particular the so-called second-generation inflation, the researchers
conducted a supplementary and development. They think that people's
expectations of market information between the formation and there is a close
relationship, and market information, access to not only cost but also Nanyichongfen.
Therefore, only the field of macroeconomics, money circulation volume and interest
rate levels, do not analyze the micro-economics of people's wages and
prices Yu Qi, market information on the transfer Fang Shi, yes Xianran enough of.
 ?(3) Hicks in macroeconomics and microeconomics question of taking the
combination of a unique way, is different from Keynesian, also from monetarism.
Early 30's, in his "Value and Capital," a book on the
attempt to proceed on a combination of both, in his theory, micro theory and macro
theory is consistent.

 ?Macroeconomics is the study of the overall behavior of the economy, examine the
overall trend of economic knowledge, while the overall trend of the economy is the
economy hundreds of millions of individual economic behavior of the individual sum
of the results, therefore, must constitute the economy macroeconomic theory The
hundreds of millions of families and the basic behavior of micro-enterprises
consistent. To this end, modern macroeconomics to take three basic steps: First, try to
understand from a theoretical level, single-family and business decision-making
process. They assume that the economy exists in a typical or average family or Qi Ye,
and then use micro-economics Gongjuyanjiu Ta Menzai Gezhongbutong the
economic environment in Zenyangyiji will be how to Xing Wei. Second, the
macro-economist, trying to increase the total economy, individual families and
businesses of all decisions, to explain the overall behavior of the economy. They are
the typical home or business behavior to the methodology and some appropriate
"Fuge" (multiplied), the economy in the key variables such as
prices, production, consumption increases Zong Deng Deng, and then reasoned
various inter different whole Shuju relations, in order to explain the links between key
economic variables. Finally, the actual macroeconomic data collection and analysis of
theories and experiences to give content to verify the validity of theory.
Macroeconomics is the use of microeconomic theory that constantly improve their
own theoretical system.
cal system.

				
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