Difference between micro and macro economics Difference between micro and macro economics

Difference between micro and macro economics

Difference between micro and macro economics: a) The distinction in Definition and scope:  Microeconomics studies individual consumer, particular for industry, income, etc. But macroeconomics deals aggregately with price level, employment, overall economic policies, etc

Difference between micro and macro economics:

a) The distinction in Definition and scope:
Microeconomics studies individual consumer, particular for industry, income, etc. But macroeconomics deals aggregately with price level, employment, overall economic policies, etc.

b) The difference in purposes:
Microeconomics aims to acquire maximum utility of an individual whereas macroeconomics aims to increase national income, output, maintain price stability, etc.

c) Difference between indicators:
The indicators of microeconomics are individual demand, income, goods, supply, etc, whereas the indicators of macroeconomics are total investment, saving, price level, etc.

d) The distinction in economic problems:
Microeconomics is related to problems of a particular individual, household, firm, etc. But macroeconomics is related to national problems like unemployment, price hike, the balance of payment, etc.

e) The difference in analysis:
Since the equilibrium of consumer or firm is studied within a certain time, it is called static analysis. Macroeconomics is affected by time interval. So, it is called dynamic analysis.

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