Some difference between Micro and Macro Economics: Economics is divided into two major parts, Micro Economics, and Macro Economics.
Micro Economics -- It is concerned with the behavior of individual households, business firms, and governments and how they interact with each other.
- For Example: How do firms choose how much to produce or what kind of products to produce is a microeconomics question.
- Micro Economics starts by thinking about how individuals make decisions.
Macro Economics -
- It concentrates on the behavior of the economy as a whole. Unemployment, interest rates, how government spending affects the economy, GDP (Gross Domestic Product) or total output of the economy are all macroeconomic topics.
- Macro and Micro are interrelated - Macro outcomes depend on micro behavior and micro behavior is affected by macro outcomes.
- Macroeconomics considers aggregate outcomes.