Question

Distinguish between:

Slicing method and Lumping method

Answer 1

Sr. No.	Slicing method	Lumping method
1.	When the aggregate is divided into small units for the purpose of studying each unit in depth, it is called the slicing method.	When the economy is not split up into small slices, but it is studied in big lumps, it is called the lumping method.
2.	Microeconomics uses the slicing method.	Macro-Economics uses the lumping method.
3.	It gives a worm’s eye view of the economy.	It gives a bird’s-eye view of the economy.
4.	It studies in depth individual units like household, firm, consumer, producer, individual wages, prices, incomes, particular commodity, etc.	It studies aggregates such as total employment, national income, national output, total investment, total savings, total consumption, aggregate supply, aggregate demand, etc.