Briefly discuss the difference between microeconomics and macroeconomics.

Short Answer

Expert verified
Microeconomics is the study of economics at the individual or company level, while Macroeconomics is the study of the national economy or the global economy as a whole.

Step by step solution

01

Understanding Microeconomics

Microeconomics is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms. A comparison to macroeconomics will be done in the next steps.
02

Understanding Macroeconomics

Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. This includes national, regional, and global economies.
03

Comparing Microeconomics and Macroeconomics

Comparatively, while microeconomics focuses on individuals and firms, macroeconomics looks at the bigger picture and focuses on the aggregate changes in the economy such as inflation, unemployment, and economic growth.

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