What is the difference between microeconomics and macroeconomics?

Microeconomics studies individual decisions, firms, and markets, while macroeconomics examines the economy as a whole, including inflation, unemployment, and Gross Domestic Product (GDP).

How do interest rates affect the economy?

Higher interest rates typically slow economic growth by making borrowing more expensive for consumers and businesses, potentially reducing spending and investment. Lower rates tend to stimulate growth.

What is inflation and why is it important?

Inflation is the rate at which the general level of prices for goods and services is rising, and purchasing power is falling. It's crucial because it impacts consumer spending, investment decisions, and overall economic stability.

What is Gross Domestic Product (GDP)?

GDP measures the total monetary or market value of all finished goods and services produced within a country's borders in a specific time period. It serves as a key indicator of economic health and size.