Question
Slicing Method and Lumping Method.

Answer

Slicing MethodLumping Method
(a) In slicing method the entire economy is cut into individual slices and each unit is studied in depth.(a) In lumping method, we study the economy as a whole without slicing it.
(b) Micro Economics uses the slicing method.(b) Macro Economics uses the Lumping Method.
(c) In slicing method, in depth study of the behaviour of an individual unit like a household, a firm, a product, a factor is done.(c) In lumping method, it deals with the behaviour of large aggregates like National Income, aggregate demand, aggregate supply, employment and their functional relationship is studied.
(d) It relates to the in-depth study of a tree and not the study of forest as a whole.(d) It relates to the study of the forest as a whole and not a particular tree.
(e) Here we achieve a worm’s eye view.(e) It gives a bird’s eye view of the whole economy.

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