Explanation of Solution
Microeconomics refers to a focus on a particular market and also measures production by the quantity of the goods and services produced. Macroeconomics refers to the production of all goods and services; it determines that production by the quantity of goods and services produced isn’t possible because it would involve adding together goods and services measured in different units; for example, number of automobiles, bushels of wheat, gallons of milk, and so forth. Thus, in macroeconomics, the economist measures the quantity by the market value.
Concept introduction:
Microeconomics: Microeconomics focuses on several issues such as
Macroeconomics: Macroeconomics refers to the study of a whole unit. It studies the whole market simultaneously. It is also interested in studying the national
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Chapter 8 Solutions
Macroeconomics (7th Edition)
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