Answer to Question #179455 in Microeconomics for joshua muendo

Question

Explain the difference between macroeconomics and microeconomics.How are these two field related?

Answer 1

The difference;

Macroeconomics studies the economy as a whole and therefore looks at the aggregate markets.

Microeconomics studies individual factors in the economy therefore it is concerned with its subcomponents.

Related since;

Economics is divided into two categories: microeconomics and macroeconomics. The both study decision that is

Microeconomics is the study of individuals and business decisions,

while macroeconomics looks at the decisions of countries and governments.