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.

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  6. Can you give an example for how slicing method is used to study microeconomics?

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