Distinction between Microeconomics and Macroeconomics:

In Microeconomics the word "Micro" stands for small. The letter "I" in Micro stands for Individual, that it deals with the behavior of an individual firm in the economy. whereas, the "Macro" in Macroeconomics, stands for big. The letter "A" stands for 'aggregates' that it studies the economy as a whole. In the following lines let us see the differences between the Microeconomics and the Macroeconomics.

Microeconomics:

1. Microeconomics is that branch of economics which studies the the behavior of an individual unit of a economy.
2. The main tool of microeconomics are demand and supply of goods and services
3. The aim of microeconomics is to determine the price of a commodity or factors of production.
4. In microeconomics prices and output determines a commodity.
5. In microeconomics in individual income individual saving, determination of rise of a particular commodity, an individual unit of farm output, the consumers equilibrium are studied.

Macroeconomics:

1. Macroeconomics is that branch office economy which studies the behavior of aggregates of the economy of as whole.
2. The man tool used are aggregate demand and aggregate supply of an economy.
3. The aim of microeconomics is to determined national income and level of employment of the economy.
4. In macroeconomics national income, output is studied.
5. National income, national saving, general price level, aggregate demand, aggregate supply, poverty, unemployment, etc are the examples of microeconomics.