Macroeconomics vs. Microeconomics: What’s the Difference?

The main difference between macroeconomics and microeconomics is that macroeconomics looks at the economy as a whole whereas microeconomics looks at individual parts of the economy.

Before we move to more differences, let’s first understand Macroeconomics and Microeconomics:

  • Macroeconomics: Macroeconomics is the branch of economics that studies the behavior of the economy as a whole.
  • Microeconomics: Microeconomics is the branch of economics that studies the behavior of individual consumers, businesses, and industries.

Now, let’s get to Macroeconomics vs Microeconomics:

Major differences between Macroeconomics and Microeconomics

Macroeconomics Microeconomics
Macroeconomics is concerned with issues like inflation, unemployment, and economic growth. Microeconomics is concerned with the decisions made by individual consumers, businesses, and industries.
Macroeconomics uses aggregate data. Microeconomics uses individual-level data.
Macroeconomics looks at the economy in the long run. Microeconomics focuses on short-term decisions.
Macroeconomics is more concerned with policy and government intervention in the economy. Microeconomics focuses more on market forces.
Macroeconomics is more theoretical. Microeconomics is more applied.

So, these are the main differences between the entities.

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