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Micro economics and macro economics

Micro economics and macro economics:

Economic theory can be widely divided into micro and macroeconomics. The word micro means small and macro means big.

In microeconomics, we deal with troubles like the output of a single firm or industry, price of a single commodity & spending on goods by a single household.

Macroeconomics studies the economic system as an entire. In it, we acquire a complete picture of the working of the economy. It is a study of relations among broad economic aggregates like net employment, saving and investment. We might also say that macro economics is the theory of employment, income, prices and money. That is why macroeconomics is at times studied beneath the title “Income and Employment Analysis”.

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