WHAT IS THE DIFFERENCE BETWEEN MICRO AND MACRO?

Micro and Macro are the two main branches of economics. Micro and macro are derived from Greek words. The term micro is derived from the word ‘mikros’ which means small. The term macro is derived from the word ‘makros’ which means large.

Micro deals with individual variables like,

• Individual persons
• Firms
• Households 
• Industry

Whereas macroeconomics deals with the whole economy. Which is concerned with

• Employment
• Aggregate demand 
• Aggregate supply 
• Investments 
• Interest rates