How can we, as a nation, define microeconomics and macroeconomics in terms of our current economic problems? I have been wondering this question since the Great Recession took hold, and I find that the answer is simple. Microeconomics and macroeconomics are concepts, which are used to describe a certain aspect of economic activity.
The way to define micro economics would be to examine how people operate within a particular economic system. For example, in an economy which has four seasons, the seasons themselves are micro-economic entities. In these seasons, people behave and make decisions about the economic value of their various choices. The economy is then able to produce various goods and services for these individuals. The seasons, in turn, are micro-economic entities within the broader economic structure.
Similarly, in macroeconomics, micro is associated with the larger macro. It represents the level of production, the size of the economy, the quantity of goods and services produced, and the overall state of the economic system. Macro is the larger context, and micro is associated with the smaller macro. When you look at an economy as a whole, there are various macroeconomic entities within that framework. When you look at economies as micro entities, there are several micro-economic entities within that framework, including human beings, individual goods and services, and the overall economic structure.
So, by looking at micro economics and macro economics in terms of their own individual components, it makes it much easier to see how they can interact with one another and what impact these interactions can have on the wider economic environment. I find that the interaction between micro-economic entities and the macro-economic entities which they interact with is what leads to the overall state of the economy.
This interaction is what is needed to produce the macroeconomics that we see in the world today, and in order to explain the reason why micro and macro economics are both needed is so that individuals understand why they are needed. Understanding the interrelationships between macro and micro economic entities is what is needed in order to create economic growth.
The fact that humans have different levels of intelligence is another way that economics is a micro entity is because people learn and process information differently. Therefore, in an economy that is run by macroeconomics, there will be a wide variety of macroeconomic entities, which are not necessarily directly affected by the economies which are being run by micro economic entities.