The level of total investment by firms in new machinery and equipment helps to determine how rapidly the economy grows. this is a "macroeconomic" issue. however, to understand how much new machinery and equipment firms decide to purchase, one must analyze the incentives individual firms face, which is a "microeconomic" issue.
Microeconomics is the study of choices that individuals and organizations make in regards to the portion of assets and costs of products and ventures. This implies additionally considering assessments and directions made by governments.
Macroeconomics, is the field of financial matters that reviews the conduct of the economy all in all, not simply of particular organizations, but rather whole businesses and economies.
