Archive for the ‘Economy’ Category

What is microeconomics?

This tool is essential in business and trade, relates to all professions, and is the starting point of any economic analysis.
microeconomia
Microeconomics is the discipline that is responsible for studying the economic behavior of small units of decision, understanding them as businesses, households and individuals. The main objective is focused on analyzing the behavior of these units and their interaction with markets (consumers, investors, workers).

To study these phenomena, microeconomics uses formal models that explain the decisions of producers and consumers, based on assumptions, to reach conclusions through deductive methods.

The analytical part of the study, however, is based on logical reasoning, so he uses mathematical language, which brings clarity and rigor, both proceedings, and the outcome.

People have basic needs and specific to cover (food, clothing, medicine, shelter, etc.), and there are many factors that influence the ability to generate resources to meet those needs, such as labor, raw material or capital. The optimum balance and distribution of these resources is a matter microeconomic.
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What is macroeconomics?

The use of the macroeconomy is essential for planning, designing and implementing economic policies of a country, and to pursue commercial relations with other nations.
macroeconomia
Macroeconomics is the part of the economy that is responsible for explaining the behavior of aggregate variables, namely, science-based analysis of data and events that happened, with whom he develops theories that underlie economic policy.

Because of the complexity of economics, macroeconomics is to simplify all elements of the theoretical analysis, thus facilitating an explanation for the behavior of various variables, such as the total amount which gives the production of goods and services, the level employment, and the general movement of prices.

Macroeconomic theories

The study and macroeconomic analysis, is based on the use of three basic approaches or theories, which are described below:
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