MICROECONOMICS

· Micro means small

· Focus or study on INDIVIDUAL units in the economy re: individual participants in the economy like individual entities like a firm, a household, an investor, a worker , a single market that makes up the broader economy

· Deals with the problem of demand for a particular goods and services, discusses a single price determination, examines how tax cut affects a single firm’s output

MACROEONOMICS

• Macro means big
• Focus or study on ECONOMY AS A WHOLE.
• Looks at the economy from a broader perspective rather than the detailed individual choices.
• Deals with the problems like national income, money supply, economic growth, unemployment, inflation, exchange rate impact on the economy,etc