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What is the difference between microeconomics and macroeconomics?
Microeconomics studies the market behavior of individual consumers and firms, whose interaction and decision making creates patterns of supply and demand. In turn, this determines the relative prices of goods and factors of production; it also determines the quantities that will be bought and sold. The allocation of resources among competing uses is the central concept in microeconomics. Macroeconomics considers the relationships among broad economic aggregates such as national income, total volumes of saving, investment, consumption expenditure, employment, and money supply. Emphasis on policy actions to affect the performance of the economy and the role of international trade complete the focus of macroeconomics. -- Peggy Pride


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