Economics is a vast subject which keeps on developing new ideas and concepts. There is so much data and processes available in the world that it is difficult to pin point the definition of economics. Broadly speaking it is the management of money to work efficiently and grow the society in a positive direction.

Two major categories of Economics are Microeconomics and Macroeconomics

Microeconomics

Microeconomics is the part of economics which studies the factors and decisions concerned with individual entity. It studies the behaviour and outcome of an individual entity. It also studies the price-volume relation, supply and demand changes from the perspective of an individual firm.

Macroeconomics

Macroeconomics is the study of the economy as a whole. It studies the factors such as the GDP of the country, inflation, government’s fiscal policies, central bank’s monetary policies, and all the other factors that helps to study the economy as a whole.

Now you have a fair idea about economics. Let us see some basic terminologies used above

• GDP– Gross domestics product is the total goods produced and services provided within a country during one year.
• Inflation– It is defined as continuous increase in the price.
• Monetary policy– It is the policy that deals with the money aspect of the economy by controlling the interest rates which are presented by the central bank of a nation
• Fiscal policy– This policy is governed by the central government. Fiscal means revenue, the government can direct the flow of the economy by managing the revenue, either by spending cuts and taxation policies.

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