Question
Micro Variables and Macro Variables.
| Micro Variables | Macro Variables |
| (a) Micro variables refer to individual demand, market demand, individual supply, price of a commodity, etc. | (a) Macro variables refer to inflation rate, aggregate demand, aggregate supply, employment. |
| (b) Micro variables are mostly independent. It does not affect the whole economy, as they are based on assumptions. | (b) Macro Variables are inter related and inter dependent. It affects the working of the economy as a whole. |
| (c) E.g., Price and Quantity demanded are universally related. This will hold true only if the income of the consumer, taste, fashion, etc., remain constant. | (c) Change in aggregate demand, aggregate supply will affect income, employment, etc. in the economy. |
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