The Difference/Contrasts Between Microeconomics And Macroeconomics

Basically, Economics is divided into two main branches namely microeconomics and macroeconomics

Append below the contrast between these two branches of economics:

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

 

Whereas:-

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
 

 

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