As a comprehensive discipline, Western economics has a wide range of research, covering both micro and macro levels.
Microeconomics is the study of the economic behavior of individuals and individual economic units. This mainly includes the economic decision-making process of households, manufacturers and markets. For example, how households determine their consumption and saving behavior, how manufacturers determine their production and pricing strategies, and how the market uses these decisions to enable efficient allocation of resources. In microeconomics, theory is a core concept that explains how the market regulates supply and demand through the mechanism to achieve efficient allocation of resources. In addition, consumer behavior theory, producer behavior theory, market structure analysis, and factor pricing theory are all important components of microeconomics.
Macroeconomics studies the operation of the national economy as a whole and the overall economic phenomena. It focuses on the use of resources by society as a whole, such as national income, employment, inflation, economic cycles, etc. Macroeconomics is based on the theory of income determination and studies how to achieve stable economic growth and full employment through macroeconomic policies. For example, Keynesian models, AS-AD models, etc. are important tools used to explain macroeconomic phenomena and economic trends. In addition, inflation and unemployment theory, economic cycle and economic growth theory are also important areas of study in macroeconomics.
Through the study of micro and macro levels, Western economics comprehensively reveals the laws of economic operation, and provides a theoretical basis for formulating economic policies and economic decision-making by enterprises. Therefore, when learning and understanding Western economics, it is necessary to consider these two aspects comprehensively to gain a comprehensive understanding of the economy.