Macroeconomics- the study of how major components of the economy

-Inflation

-GDP

-Unemployment

-Supply & Demand

 Microeconomics- study of how households and firms make decisions and how they interact in the market.

Supply & Demand

Market structure

Positive economics- attempts to describe the world as it is.
-Ex: Minimum Wage laws= unemployment

Normative economics- it attempts to describe the world as it should be
-The government should raise minimum wage