ABSTRACT
Chapters 2-7 dealt mainly with microeconomic issues. These were issues concerning the actions of individuals (demand) and firms (supply) and their interaction to determine prices in specific markets (e.g. the market for television sets and the market for air travel). Chapters 12-15 look mainly at macroeconomic issues. These are issues that affect the whole economy. Macroeconomics deals with aggregates. Thus it adds together the spending of individuals to calculate consumers’ expenditure, or aggregate demand. It adds together the output of individual organizations to measure national output or product. Similarly, the general price level and rate of inflation are investigated rather than prices in individual markets.
