Answer to Question #43341 in Macroeconomics for Max

Question

What is difference between macro and micro?

Answer 1

Differences Between Macro and Microeconomics

To an extent, both macro and microeconomics look at supply and demand, as well as price levels. However, each field views these factors from a different standpoint. To better grasp the meaning of macroeconomics, it might be helpful to think of it as a "top-down approach" toward understanding the economy. Macroeconomics paints a picture of the economic conditions in a particular country as a whole; however, knowledge of macroeconomic principles can be used to develop an understanding of conditions for the individual players in the economy. Likewise, microeconomics looks at the economy from the bottom up, but the information it gathers about individual households and businesses is helpful in gaining an understanding of general economic conditions. The difference of micro and macroeconomics may seem well-defined on the surface, but these two categories of study can overlap in significant ways. In fact, no student of the economy can truly comprehend the meaning of macroeconomics without comprehending the meaning of microeconomics as well.