Disadvantages Of Microeconomics

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Businesses and people make decisions when regarding where to allocate their resources and the price of goods & services, this is microeconomics. Governments create regulations and taxes; this must also be taken into consideration. Supply and demand is the main focus of microeconomics, to determine the current price levels in the economy.
Microeconomics takes a look at an individual company and figures out how to maximise the production and capacity of the company enabling it to lower its prices and therefore better compete in the industry. Microeconomics follow up on a set of theorems and laws, rather than an empirical study.
Macroeconomics is the section of economics that studies the economies behaviour as a whole, instead of individual
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The MPC aims to maintain a stability in price within the UK alongside this, to support the economic policy of her majestys government including its objective for growth and employment claims the Bank of England (bankofengland.co.uk, 2016)[3]
Since the MPC is responsible for creating the monetary policy, it must have the appropriate control and resources that enable them to affect the monetary status.

Bank of England Base Rate
As of the 4th of August 2016, the current Bank of England rate is 0.25%, as stated on the Bank of England website (bankofengland.co.uk, 2016)[4] The base rate is the rate the Bank of England charges all banks and all finance corporations for loans. The MPC make the decisions on the level of interest rates. Economic growth is an aim of the Bank of England, this is done by preserving the government’s policy and price stability. The British central bank has two main sections they must deal with and they are financial and monetary stability. Monetary stability has two main criteria;
1. Sureness in currency
2. Sound prices
Stable prices are maintained by ensuring that the government’s inflation targets are matched by price

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