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Microeconomics examines individual decision-making units like households and firms, while macroeconomics analyzes the economy as a whole by looking at aggregates like total output, income, prices, employment, and consumption. The Great Depression showed that classical microeconomic models could not explain high unemployment, providing the impetus for the development of macroeconomics. John Maynard Keynes then published his work indicating governments could intervene to stimulate demand and affect output and

Author

Komal Sahu

Language

EN