Definitions
Macroeconomics | Microeconomics |
The study of economics with a holistic view of economic systems such that the behavior of individuals is only measured in aggregate. | The study of economics with a behavioral view that models individual economic decisions and how they impact economic systems. |
Scope
Economics is the study of the production, distribution and consumption including topics such as markets, capital, wealth, productivity, efficiency and economic bads. In theory, macroeconomics and microeconomics have the same scope in that you can use either to examine any problem in economics.Examples
Macroeconomics is useful for modeling top-down policies such as fiscal and monetary policy. Microeconomics looks at the bottom-up details of economic systems, incentives, competition and behavior. The following are examples of topics in each practice.Macroeconomics | Microeconomics |
Aggregate SupplyAggregate DemandInflationUnemploymentMonetary PolicyFiscal PolicyGrowth ModelsEconomic Systems | SupplyDemandCompetitionConsumptionOpportunity CostProductivityEfficiencyMarket Behavior |
Overview
Area | Macroeconomics | Microeconomics |
An Approach To | ||
Scope | ProductionDistributionConsumptionCapitalMarketsCompetitionEfficiencyProductivityGrowthEconomic Problems | ProductionDistributionConsumptionCapitalMarketsCompetitionEfficiencyProductivityGrowthEconomic Problems |
Approach | Top-down | Bottom-up |
Methods | ||
Focused On | Economic SystemsEconomic Policy | Economic Behavior |
