Difference between Macroeconomics and Microeconomics

ManagementBusinessCompanies/Organisations

Macroeconomics

Macroeconomics as name suggests deals with social and economic state of large system or firm. During study of macroeconomics, one sees the overall picture of the system or firm.

Microeconomics

Microeconomics deals with individuals and internal management. Microeconomics is a subset of macroeconomics. In micro-economics one is interest in the small intricacies of the system.

Sr. No.KeyMacroeconomicsMicroeconomics
1Deals withMacroeconomics deals with social and economic status of system as whole.Microeconoics deals with individuals and activities within the system.
2TrackingMacroeconomics tracks the big picture, not just one unit.Microeconomics tracks even the smallest units and their functioning.
3StudyA business man studies GDP, consumption trends, investment patterns etc. to judge the market.A business man studies the resources available, costs, employees availability etc to sustain the business.
4TargetMacroeconomics helps in determining aggregate demand and supply of target economy.Microeconomics helps in determining the current need of demand and supply chain.
5FactorIncome is major determination factor in macroeconomics.Price is major determination factor in microeconomics.
6EquilibriumMacroeconomics study helps in setting equillibrium between income and employment in an economy.Microeconomics study helps in setting equillibrium between consumer and firm.
7ExampleInternational organization studying money exchanges tracks macroeconomics factors.Small firms tracks microeconomics of their firm operations.
raja
Published on 28-Nov-2019 10:23:00
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