Question

10. What is the key requirement for developing economic theory that will be accepted by academics? Give an example of the requirement on demand. Define the key differences between Macro & Micro Economics. Why do we have two courses?

Answer 1

The model should hold true in the real world scenario and should have emperical data supporting it expect a few assumptions.

The key difference in macro and micro is that macroeconomics deals which economy as a whole, on the larger scale, like a country's economy.e example: the demand of a country

Whereas microeconomics deals with a micro version of economics ie on a small scale like an individual or a group of people. Example: individual demand or individual preference. And to study both these aspects separately we have two courses.