Macroeconomics vs. Microeconomics Essay

hese atomic number 18 two branches or rather methods of exposition of the science of economics. The indication between them corporation best be explained by comparing their main features. As the terms suggest, macroeconomics deals with the market on a large-scale and its aggregate problems, while microeconomics concerns markets on a small-scale and individual aspects of the problems. There are hexad distinct aspects of the two approaches that are shown as in the following table MicroeconomicsMacroeconomics (a) Units of the study Individual consumers, producers workers, traders, etc. Aggregate units such as state National or International economy. (b) Activities Optimization and maximization of individual(prenominal) gains and profits. Long term growth, maintenance of high levels of production and employment. (c) Origin Micro activities emerge on the motive side of consumers choices. Problems of long-term growth depend upon the supply of productive resources (d) ConditionsThis approach is functional down the stairs static conditions and small time intervals. This approach is functional under dynamic conditions and complex long push changes. (e) Methods It is concerned with small adjustments, for which the application of a marginal method is suitable. It deals with complex, dynamic changes inviting the use of advanced numerical techniques. (f) Levels Micro adjustments in resource A allocation are made in response to changes in relative prices of goods and services.The aggregate level of income or total economic activities is considered to be constant. Macro approach attempts to bring out the conditions of long-term expansions in output as a whole, assuming relative prices as constant (or significant). This distinction between micro and macroeconomics as presented above is only a matter of theoretical convenience. The two approaches are complementary and not competitive one cannot consider these to be watertight compartments