Differentiate between Microeconomics and Macroeconomics, with suitable examples.

Economics, as a broader umbrella, is studied under two different branches –

microeconomics and macroeconomics.

Microeconomics is the branch of economics that deals with the study of the behaviour of individual economic agents in the markets for different goods and services. It helps in figuring out how prices and quantities of goods and services can be determined through the interaction of individuals in the markets. For example, microeconomics can help in evaluation and analysis of the indigenous good and services for a country.

Macroeconomics, on the other hand, deals with economy as a whole and helps focus on aggregate measures such as total output, employment and aggregate price level. Through macroeconomics, one can find out how to determine levels of these aggregate measures and their evolution over time. For example, macroeconomics deals with total economy output, determination of this total output, growth over time, employment of resources, unemployment, price-rise and so on.