ATAR Notes: Forum
VCE Stuff => VCE Business Studies => VCE Subjects + Help => VCE Economics => Topic started by: Collin Li on October 21, 2007, 02:03:23 am
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The key question I'm asking is:
Does microeconomics imply macroeconomics? In other words, are all macroeconomic principles derived from microeconomic (or rational) concepts?
If not, what basis does macroeconomics rest on? Is it based on society's irrationality? If so, are there incentives and increases in efficiencies involved in finding a more rational solution to macroeconomic thought?
I will report back to you after I get my economics major (in 4 years time, 5 if I choose to do Honours in Economics)
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Good thinking. Microeconomics is for firms, individuals etc. Most of the principles from macroeconomics can be derived from microeconomics.
But as, macroeconomics is signficiantly more complex than micro, some concepts can be a whole new ballgame. But, then again, its eco for country.
Fiscal and monetary policies are prime examples of a non-derived concept from micro.
So yeah, good thinking. :p
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I know very little about economics. However, physicists can use quantum electrodynamics which operates on a very small scale, i.e. interaction between electrons to predict what will happen to larger objects, i.e. a football.
Perhaps if the principles of microeconomics are solid you can somehow extend these principles to macroeconomics. But I'm thinking, is there a mathematical foundation of microeconomics? If it's just some logical principles, then I think it'd be hard to deduce what would happen on a wider scale.
Sorry if this is retarded, again, I don't know much.
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Nah, all opinions are appreciated :)