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What are the differences between microeconomics and macroeconomics?

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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.

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