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It is a slicing method.Keynes refuted Pigous view that a cut in money wage could eliminate unemployment during a depression and bring about full employment in the economy.They are the problems of overpopulation, inflation, balance of payments, general underproduction, etc.Thus the scope of microeconomics to aggregates relates to the economy as a whole, together with sub-aggregates which (a) cross product and industry lines (such as the total production of consumer goods, or total production of capital goods and which (b) add up.(3) For Understanding the Behaviour of Individual Units: For understanding the behaviour of individual units, the study of macroeconomics is imperative.Mostly, these stem from attempts to yield macroeconomic generalisations from individual experiences.It concentrates on individual consumer, producer, price of a particular commodity, household, etc.Profits, investment and output will decline, unemployment will spread and ultimately the economy will be faced with depression.Difference between Microeconomics and Macroeconomics: The difference between microeconomics and macroeconomics can be made on the following counts.Ceteris Paribus It assumes that all other things being equal (same) but actually it is not.
Independent of each other both the income levels relate to economic statics.Walras, Wicksell and Fisher were the modern contributors to the development of macroeconomic analysis before Keynes.There are the problems of economic fluctuations and growth which can only be studied by the method of dynamic economics.The objective of microeconomics on demand side freeable 3d chess games is to maximize utility whereas on the supply side is to minimize profits at minimum cost.(3) Aggregate Variables may not be Important Necessarily: The aggregate variables which form the economic system may not be of much significance.Micro economics mainly concentrates on commodity pricing, factor pricing and economic welfare.It is on the basis of macroeconomics that the resources and capabilities of an economy are evaluated.It includes particular households, particular firms, particular industries, particular commodities and individual prices.Characteristics / Features of Microeconomics.These problems relate to the aggregation of microeconomic variables.