How well is macroeconomics found upon the principles of microeconomics?

Economics Dec 12, 2020

Expert Solution

Macroeconomics is based on principles of micro economy.

If an individual is studying impact of deflation on the economy (macroeconomics) he is likely to use same economic principles of microeconomics which is elasticity of demand to change in prices.
Demand and supply in microeconomics forms the basis of aggregate/market demand and supply in the economy.

All these studies of microeconomics have led to successful implementation of the macroeconomics theories.

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