Differentiate between micro and macro-economics.

Question

Differences between Micro-Economics and Macro-Economics.Micro-EconomicsMacro-Economics1. Micro-Economics deals with the...

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Differences between Micro-Economics and Macro-Economics.Micro-EconomicsMacro-Economics1. Micro-Economics deals with the...

Micro-Economics	Macro-Economics
1. Micro-Economics deals with the behaviour of individual economic units.	1. Macro-Economics is the study of the economy as a whole.
2. It deals with the economic activities of a firm or an industry.	2. It deals with the aggregates like, aggregate demand, supply, employment, national income, expenditure etc.
3. In this, we are concerned with the determination of equilibrium level of prices of goods and factors.	3. In this, we are concerned with the determination of equilibrium level of output, employment and income for the economy.
4. Demand and supply are the tools of micro- economic analysis.	4. Aggregate demand and aggregate supply are the main tools of macro-economies analysis.
5. Micro-Economics explains how resources are allocated among various goods and services and how national income is distributed in the economy.	5. Macro-Economics explains how productive capacity and national income of the country increases over time.