Economics Exam: Difference between Macro and Micro Economics, Monetary and Fiscal Policy, Types of Growth, Domestic Policy

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Table of Contents
MAIN BODY...................................................................................................................................3
Question 1........................................................................................................................................3
Presenting difference and relation between macro and micro economics..................................3
Question 2........................................................................................................................................4
The effectiveness of monetary and fiscal policy under the fixed and floating exchange rates:. .4
Question 3........................................................................................................................................5
Presenting different type of growth............................................................................................5
Question 4........................................................................................................................................6
REFERENCES................................................................................................................................8

MAIN BODY
Question 1
Presenting difference and relation between macro and micro economics
Economics is divided into two different categories such as micro and macro. The micro
economy is the study of specific segment of market and it include issues like consumer behavior,
labor market and theory for firms. Whereas, macroeconomics is known is as study as whole
economy and the variables such as aggregate demand, national output and inflation rate.
Moreover. Micro focus on the choices made by the individual consumer as well as businesses
concerning the fluctuating cost of services and goods in the economy (Patrick,2019). Thus, it
covers areas such as supply and demand for goods in different market places, consumer behavior
and demand for service and labor. It also covers wage of employee and its main feature is that
focus on normal situation of market area and on certain condition as well as it make use of
bottom up approaches to evaluate the economy. Moreover, different components of micro
economy market demand supply, customer behavior, Producers and driven individual
preferences as well as market particular labor market.
Whereas, macroeconomics is known as study of nation and whole economy as it has wider
scope. It consists of policies and other influencing factors that affect GDP rate as whole
(Cincotti, Raberto, and Teglio, 2022). It mainly includes top down approach and it includes
tactics like the economic growth of a country, reason for unemployment and inflation, fiscal
policies like interest rate, effect of globalization and reason that affects economic growth amount
countries.
The main components of macro economy are national output, unemployment and
inflation. Thus, it can have stated that macro and micro are different from each other. In addition
to this, it has been found that both the economics are not interrelated but depended on each other
mutually as there is close connection between both the term. All microeconomics studies can
help in evaluating the understanding of macroeconomics variables as well as study will also
contribute in formulating of economics policies and programs (Bakieva, Azamov,and Sodikov,
2019). Both share inter connected relation as for building the economy the result of both large
and small scale element affect each other or directly affected by each other. For example: