What is the difference between microeconomics and macro

Several differences also exist between these two segments of economics. Microeconomics focuses on the choices made by individual consumers as well as businesses concerning the fluctuating cost of goods and services in an economy. Microeconomics covers several aspects, such as —. Supply and demand for goods in different marketplaces. Consumer behaviour, as an individual or as a group.

Demand for service and labour, including individual labour markets, demand, and determinants like the wage of an employee. One of the main features of microeconomics is it focuses on casual situations when a marketplace experiences certain changes in the existing conditions.

It takes a bottom-up approach to analyse the economy. Macroeconomics studies the economic progress and steps taken by a nation. It also includes the study of policies and other influencing factors that affect the economy as a whole. Macroeconomics follows a top-down approach, and involves strategies like —. The overall economic growth of a country. Reasons that are likely to influence unemployment and inflation.

Fiscal policies that are likely to influence factors like interest rates. Effect of globalisation and international trade. Reasons that affect varying economic growths among countries. Another feature of macroeconomics is that it focuses on aggregated growth and its economic correlation.

There are a few differences between these two categories. Here are the primary dissimilarities —. Microeconomics studies individual economic units.

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Introduction to Microeconomics. Microeconomics vs. Supply and Demand Basics. Microeconomics Concepts.

Key Takeaways Microeconomics and macroeconomics are two fields of study involving looking at behavior in certain areas of the economy over a period of time. Microeconomics is specific and smaller in scale, looking at the behavior of consumers, the supply and demand equation in individual markets, and the hiring and wage-setting practices of individual companies.