INTRODUCTION:
The subdiscipline of economics called microeconomics studies the analysis of how people, households, and businesses make decisions and distribute resources. It addresses economic problems and comprises markets for products and services.
On the contrary, macroeconomics focuses on the examination of the operation and behavior of the economy in its entirety. Among the most important macroeconomic indicators to be researched are the gross domestic product (GDP), unemployment, inflation, growth rate, and other important macroeconomic factors.
AREA OF STUDY:
Microeconomics is the study of a specific market sector of the economy while macroeconomics covers the entire economy, which includes several market sectors.
DEALS WITH:
Microeconomics covers a wide range of topics, such as supply and demand, factor and product pricing, economic welfare, production, and consumption, among various others. Whereas, macroeconomics is concerned with problems including national income, distribution, employment, general price level, money, and others.
BUSINESS APPLICATION:
Microeconomics is used to address internal issues. Macroeconomics, on the other hand, is used to address environmental and external issues.
IMPORTANCE:
Microeconomics helps the economy by controlling the pricing of a product as well as the costs of production inputs like labor, land, and capital. Whereas macroeconomics maintains the stability of the overall price level and addresses the main problems facing the economy, such as deflation, inflation, rising prices (reflation), unemployment, and poverty.
