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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 &quot;pure product&quot; 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, &quot;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. &quot; ?English is a micro &quot;micro&quot;, which means &quot;small.&quot; 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 &quot;macro&quot;, which means &quot;big.&quot; 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, &quot;this individual households and firms optimize behavior unit laid the foundation for microeconomics.&quot; 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 &quot;production, income, price level and unemployment to analyze the behavior of the entire economy.&quot; U.S. economists E · Shapiro (E · Shapiro) stressed the &quot;macroeconomics study the functions of the national economy as a whole. &quot; ?(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 &quot;the total economy.&quot; (4) different basic assumptions. The basic assumption of microeconomics is the market clearing, completely rational, full information, that the &quot;invisible hand&quot; 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 &quot;visible hand&quot; 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 &quot;New Neoclassical Synthesis&quot;; addition to Kaldor, Joan Robinson, who led the Keynesian view that, from Ricardo&#39;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&#39;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&#39;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&#39;s, in his &quot;Value and Capital,&quot; 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 &quot;Fuge&quot; (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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