What Is Macroeconomics?

Question 1

Difference between macro and microeconomics?

Answer 1

Macro: “big picture” aspects of an economy, eg inflation, unemployment and economic growth

Micro: economic behavior of individuals and how firms make decisions under various economic conditions

Question 2

Difference between gross domestic product and gross national product?

Answer 2

GDP: Concentrates on the economic activity taking place within the country’s borders

GNP: Includes international income and expenses (from foreign operations)