Question

Microeconomics and macroeconomics are: Multiple Choice not related because they are taught as separate courses. virtually identical, though one is much more difficult than the other. interrelated because both are taught by the same teacher. interrelated because what happens in the economy as a whole is based on individual decisions.

Answer 1

Answer:

interrelated because what happens in the economy as a whole is based on individual decisions.

Explanation:

Generally, Economics can be classified into two (2) categories, namely;

1. Macroeconomics can be defined as the study of behaviors, performance and factors that affect the entire economy. Hence, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.

2. Microeconomics can be defined as the study of the effect of price and quantity levels through interactions between individual buyers and sellers in various markets.

Hence, it is focuses on analyzing or evaluating the decisions of consumers (buyers) and those of firms (sellers) such as methods of production, pricing; and the manner in which government policies affect those decisions.

In conclusion, microeconomics and macroeconomics are interrelated because what happens in the economy as a whole is based on individual decisions.