The micro and macroeconomics are distinguished on the following grounds:
1. Scope:
- Microeconomics studies in individual units so its scope is narrow.
- Macroeconomics studies in aggregates, so its scope is wider.
2. Method of study:
- The microeconomics follows slicing method as it studies individual unit.
- The macroeconomics follows lumping method as it studies in aggregates.
3. Economic agents:
- In microeconomics, each individual economic agent thinks about its own interest and welfare.
- In macroeconomics, economic agents are different among individual economic agents and their goal is to get maximum welfare of a country.
4. Equilibrium:
- Microeconomics studies the partial equilibrium in the country.
- Macroeconomics studies the general equilibrium in the economy.
5. Domain:
- Microeconomics consists of theories like consumer’s behaviour, production and cost rent, wages, interest, etc.
- Macroeconomics comprises of theory of income, output, and employment, consumption function, investment function, inflation, etc.