Macroeconomics is the economics sub-field of study that considers aggregate behaviour, and the study of the sum of individual economic decisions. Macroeconomics can be used to analyze how best to influence government policy goals such as economic growth, price stability, full employment and the attainment of a sustainable balance of payments.
It considers the behaviour of individual consumers, firms and industries. Microeconomics is a branch of economics that studies how individuals, households, and firms make decisions to allocate limited resources, typically in markets where goods or services are being bought and sold.
Microeconomics examines how these decisions and behaviours affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the supply and demand of goods and services. Microeconomics has been called “the bottom-up view of the economy”, or “how people deal with money, time, and resources.” One of the goals of microeconomics is to analyze market mechanisms that establish relative prices amongst goods and services and allocation of limited resources amongst many alternative uses.
Microeconomics analyzes market failure, where markets fail to produce efficient results, as well as describing the theoretical conditions needed for perfect competition. Significant fields of study in microeconomics include markets under asymmetric information, choice under uncertainty and economic applications of game theory.
Macroeconomics is the investigation of the exhibition, structure, conduct and basic leadership of an economy all in all. Macroeconomists center around the national, local, and worldwide scales. For most macroeconomists, the motivation behind this order is to augment national salary and give national monetary development. Financial analysts trust that this development means expanded utility and an improved way of life for the economy's members.
Microeconomics, then again, manages the financial connections of a particular individual, a solitary element, or an organization. These connections, which for the most part are purchasing and selling products, happen in business sectors. In this way, microeconomics is the investigation of business sectors. The two key components of this financial science are the association among free market activity and shortage of merchandise.