How does macroeconomics differ from microeconomics?

Answer 1

Macroeconomics focuses on the economy as a whole, analyzing aggregate indicators such as GDP, unemployment rates, and inflation to understand large-scale economic trends and policies. In contrast, microeconomics examines individual agents, such as households and businesses, and their decision-making processes regarding resource allocation, pricing, and consumption. While macroeconomics looks at systemic factors influencing the economy, microeconomics delves into the specifics of supply and demand within individual markets. Both fields are interconnected, but they operate at different levels of economic analysis.