Explain the difference between Microeconomics and Macroeconomics. Wha

Explain the difference between Microeconomics and Macroeconomics.

What will be an ideal response?

ANSWER

Microeconomics and macroeconomics differ in the economic unit on which they focus. Microeconomics focuses on the individual economic agent, i.e., the consumer or the firm. Whereas macroeconomics considers the economy as a whole. There is a close link between the two branches, however, because many macroeconomic relationships are based on aggregate versions of the behavioral relationships derived on the microeconomic level.