Macro
economics deals with the overall economy of a nation or country. Its focus is
more towards aggregate demand and supply. It further deals with issues of
unemployment and how to control inflation. The other areas that macro economics
is concerned about are monetary and fiscal policy, meaning, evaluating the
effects of interest rates on the whole economy. Macro economics also gives
policies that can help in the growth of a country’s economy. In addition to
that it also helps in making policies which can help in international trade.
Whereas
micro economics focuses mainly on individual economy, which means that it deals
with demand and supply of an individual, be it a firm or a person. It further
gives theories regarding the behaviour of an individual and the individual labour
markets. It also discusses the factors that affect the production and
consumption of a firm. In short, micro economics deals with consumer behaviour in
a given economic situation.
Having discussed the
differences between micro and macro economics, it can be said that macro
economics is the study of the overall economy of a country, whereas micro
economics is the study of the behaviour of individual.