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Money can be used as: The medium of exchange is vital as it helps in eradicating the barter system which involved the exchange of goods or services only which is termed as a double coincidence of wants. Medium of exchange made transactions easier and broadened the scope of trade around the world.
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Differences Between Microeconomics and Macroeconomics Microeconomics Studies the economy of a particular market segment Studies the economy of several market deportesxtrem.000webhostapp.com Deals with aggregates like national output, national income, price level, etc.
Determines the price of a certain commodity along with the prices of substitute and complementary goods Maintains the general price level of all commodities Takes a bottom-up approach when analyzing an economy Takes a top-down approach how to find research papers online analyzing an economy Similarities of Microeconomics and Macroeconomics Even though it is convenient to classify economics in two branches, to some extent the split is so faint that it is hardly noticeable.
Microeconomics principles are used in macroeconomics. For instance,the study of devaluation uses principles from both categories like elasticity of demand and changes in prices.
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This way, we can say that both areas are interdependent.