Abstract

The possibilities of applying macroeconomic models to model microeconomic processes under the economic conditions of using these models were investigated in this article. In a closed-type circular economy with homogeneous product production, the application of these macro models becomes possible. The main objective of this article is to explore the directions of applying production functions and dynamic models at the micro level, constructing an economic-mathematical model to simulate production activities, and identifying possibilities for effective economic development of a company. Let's highlight the main tasks set to achieve this goal: investigate the possibility of applying macroeconomic models to model microeconomic processes; modify general dynamic models for their use in small and medium-sized enterprises; compare the obtained modeling results using Keynesian and neoclassical approaches; develop recommendations for further improvement and effective application of these models in production enterprises. To address the tasks of the study, the following research methods were employed: observation, generalization, comparison, formalization, classification, statistical analysis, economic-mathematical modeling, and forecasting of results. The article compares two selected approaches − Keynesian and neoclassical. A model was developed for each approach, taking into account the key aspects of the respective economic approach. The conditions for applying macroeconomic models to model microeconomic processes were examined during the research. Two models were developed and tested using real enterprise data. The models were used to analyze various microeconomic processes, including consumption, production, and investment. The results of model testing included analyzing the effects and dynamics of microeconomic processes according to the chosen Keynesian and neoclassical approaches. Each approach was evaluated in terms of its ability to explain and predict real economic phenomena. Based on the presented results, conclusions were comparison the effectiveness of applying macroeconomic models to model microeconomic processes.

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