Economics is a broad subject that can be divided into two areas: Macroeconomics and Microeconomics
Macroeconomics is the big picture. Its the study of the aggregate performance of the economy.
- Macroeconomists througly study the GDP (Gross Domestic Product)
- Inflation Rate
- Unemployment rate
Microeconomics is the study of decisions that people and businesses make regarding the allocation of resources and prices of goods and services.
- Supply and Demand
- Oppurtunity Cost
Microeconomists are concerned with the interaction between individual buyers and sellers and the factors that influence the choices made by buyers and sellers.
It is important to know that while these two studies of economics appear to be different, they are actually interdependent and complement one another since there are many overlapping issues between the two fields. For example, increased inflation would cause the price of raw materials to increase for companies and in turn affect the end product's price charged to the public.
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