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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