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There are two sides to labour economics. Labour economics can generally be seen as
the application of microeconomic or macroeconomic techniques to the labour market.
Microeconomic techniques study the role of individuals and individual firms in the
labour market. Macroeconomic techniques look at the interrelations between the
labour market, the goods market, the money market, and the foreign trade market. It
looks at how these interactions influence macro variables such as employment
levels, participation rates, aggregate income and gross domestic product.