What is micro-macro paradox? give example.

 - IF AN individual saves more ,he adds to his future prosperity .

if all people in an economy saves more and spend less ,demand for goods and services may decline .consequently ,investment decline ,production and employment level may fall .it may cause poverty rather than prosperity .....

i think this topic is deducted 

  • 7

yup it is not mentioned in the syllabus 

  • 1

but this question was asked in boards?????

  • 0

pardox is a seemingly absurd or contradictory statement, though, often a true statement. sometimes, there are pardoxes seen in micro and macro activities. it means, an act which is benefical for an individual, may prove to be harmful for the economy as a whole.

eg. if individual saves, his family will be benefitted , but if the whole economy starts saving, it will result in contaction of demand, output, employement, and income. as a result, the whole economy will suffer.

  • 3
If individual save it is good for him and her if whole economy save then it will disturb or decrease the whole economy it is not like that one economy is good then other it is like one is hitting other and other is hitting at
  • 0
If an individual save more, he adds to his future prosperity if all the people in an economy save more (and spend less), demand for goods and services may decline. Consequently, investment may decline; production and employment level may fall.The economy will be driven towards future poverty rather than prosperity
  • 1
What are you looking for?