Problem 8

Introduction

Economics is broadly divided in two parts, macroeconomics and microeconomics. Microeconomics discusses the working of individual agents within the economy such as businesses, workers, and household whereas; macroeconomics describes the economy as a whole. It discusses broad issues like unemployement, inflation, deflation, economic growth, imports and exports, and government deficits. Microeconomics and macroeconomics are not different subjects, but instead complementary perspectives on the overall subject of the economy.