What is the difference between Microeconomics and Macroeconomics?

The difference between Micro and Macroeconomics is simple to understand and the hint is in the name!

Microeconomics is the study of economics on a 'small' level: at an individual, firm and market level. This could involve examination of demand and supply models of a certain product or behaviours of individuals and firms and their effect on each other and the wider economy.

Macroeconomics on the other hand is the study of economics on a 'larger',wider level: issues that affect the economy of a nation as a whole. This could involve the study of for example inflation, unemployment and exports/imports.

Answered by Xiaoli M. Economics tutor

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