Microeconomics studies individual and corporate decisions, whereas macroeconomics studies national and government decisions. While analysing any economy, micro economics takes a bottom-up approach, whereas the macroeconomics takes a top-down approach into consideration. Microeconomics and macroeconomics are the two branches of economics.Microeconomics determine the price of a particular commodity along with the prices of complementary and the substitute goods, whereas the Macroeconomics is helpful in maintaining the general price level.Microeconomics covers issues like how the price of a particular commodity will affect its quantity demanded and quantity supplied and vice versa while Macroeconomics covers major issues of an economy like unemployment, monetary/ fiscal policies, poverty, international trade, etc.ADVERTISEMENTS: These terms were first coined and used by Ragnar Frisch and have now been adopted by economists all the world over. There is a good reason for this bifurcation. It should be clear by now that economics covers a lot of ground. ADVERTISEMENTS: The subject-matter of economics has been divided into two parts: 1. Microeconomics deals with an individual product, firm, household, industry, wages, prices, etc., while Macroeconomics deals with aggregates like national income, national output, price level, etc. What is the difference between microeconomics and macroeconomics A typical textbook would say something like this: Microeconomics is the study of how firms and households make decisions macroeconomics is the study of the economy as a whole.
While microeconomics is applied to operational or internal issues, environmental and external issues are the concern of macro economics.As against this, the focus of macro economics is on aggregate economic variables. Micro economics stresses on individual economic units. Whereas microeconomics looks at demand and supply with regard to particular commodities, macroeconomics looks at aggregate demand and aggregate supply.Microeconomics studies the particular market segment of the economy, whereas Macroeconomics studies the whole economy, that covers several market segments.The points given below explains the difference between micro and macro economics in detail: Key Differences between Micro and Macro Economics
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