Different between Microeconomics and Macroeconomics

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Microeconomics

Microeconomics is the social science that studies individual actions of human and businesses. Specially, it studies consumer behavior and how they affect the utilization and distribution of scare resources.

Briefly, it studies about human choices and individual markets. In addition to that, microeconomics focuses on the demand and supply that decide price levels of the economy. Further, it studies about the behavior of businesses. For example, the maximization of the production capacity. Specially, how they maximize the production capacity and how it affects the price levels of the economy.

Macroeconomics

Macroeconomics is a study of the whole economy. On the other words, it studies how aggregate economy behaves. It focuses on variables such as, inflation, price levels, gross domestic product (GDP), rate of growth, national income and how the economy deals with these variables.

Briefly, macroeconomies studies about the behavior of the whole economy. Further, it studies policies (eg:- monetary policy) and their effect on the economy and reasons for inflation. And it focuses on global economics.

The main difference between microeconomics and macroeconomics is that, microeconomics focuses on individual markets while macroeconomics focuses on the whole economy.

 

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