Slicing method and Lumping method.
Slicing method and Lumping method:-
Micro economics uses slicing method for in-depth study of economic units. It divides or slices the economy into smaller units, (such as individual households, individual firms, etc) for the purpose of in-depth study.
Macroeconomics uses lumping method for the purpose of economic study. Under lumping method we study the general price level, and not prices of individual products.
|S.No.||Slicing Method||Lumping Method|
|(i)|| In slicing method the entire economy is cut into small individual slices.
||In lumping method the whole economy will be studied.|
|(ii)||Microeconomics uses the slicing method.||Macroeconomics uses the lumping method.|
|(iii)||In slicing method indepth study of individual unit is done.
In lumping method indepth study of whole economy is done.