Macroeconomics and microeconomics

aggregate	сукупність, ціле	consumption	споживання
simplified	спрощений	competition	конкуренція
equilibrium	рівновага	wages	заробітна плата

Economics as a science consists of two disciplines: macroeconomics and microeconomics.

Macroeconomics is the study of large economic systems, such as those of whole countries or areas of the world. It tries to explain broad aggregates and their interactions “top down”, that is, using a simplified form of general-equilibrium theory. Such aggregates include national income and output, the unemployment rate, and price inflation and subaggregates like total consumption and investment spending and their components. It also studies effects of monetary policy and fiscal policy.

Macroeconomic analysis also considers factors affecting the long-term level and growth of national income. Such factors include capital accumulation, technological change and labour force growth.

Microeconomics is the branch of economics that studies individual producers, consumers, or markets or the decisions and choices made by individual businesses, families, etc. about spending or earning money, for example the choice to charge a particular price for goods.

Microeconomics also studies how government activities such as regulations and taxes affect individual markets. Besides microeconomics tries to understand what factors affect the prices, wages and earnings.

1 What is microeconomics? 2 What is macroeconomics? 3 What factors are taken into consideration when macroeconomic analysis is performed? 4 What is the main difference between the two disciplines?

Translate into Ukrainian:

1. Economists have two ways of looking at economics and the economy. One is macro approach, and the other is the micro.

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2. Macroeconomics is the study of the economy as a whole. In particular, it studies the overall values of output, unemployment and inflation.

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3. Equilibrium is a situation in which the amount of particular goods or services that people want to buy (demand) at a particular price equals the amount that businesses want to supply (supply).

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Дата добавления: 2015-07-11