490 12-2 10.1 WHAT IS MACROECONOMICS ●Microeconomics Microeconomics is the study of how individual households and firms make decisions and how they interact with one another in markets. ●Macroeconomics Macroeconomics is the study of the economy as a whole. Its goal is to explain the economic changes that affect many households,firms,and markets. Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 12-2 10.1 WHAT IS MACROECONOMICS • Microeconomics – Microeconomics is the study of how individual households and firms make decisions and how they interact with one another in markets. • Macroeconomics – Macroeconomics is the study of the economy as a whole. – Its goal is to explain the economic changes that affect many households, firms, and markets