Difference Between Micro And Macroeconomics

702 Words3 Pages
The differences between Macroeconomics and Microeconomics
The two aspects of Macroeconomics and Microeconomics are important factors when considering an academic approach to economics. The understand their significance it is firstly important to define these two aspects of economics.

This aspect of economics, studies the economy as a whole. Macroeconomics requires a study of the overall performance of the aggregate economy. This can be achieved by looking key measures such as GDP, Unemployment rates and inflation, major indicators of the overall performance of the economy itself. By studying this, it can help economists determine the correct fiscal and monetary policies that would be required for a country to achieve, or if established, maintain a stable growth.

It is most common in Macroeconomics to use larger variables, which are present in the economy to determine such growth, if we consider government spending, inflation, employment and consumption when considering a nation’s current and future economic outlook (Investopedia, n.d.).

While Macroeconomics, discussed above deals with a broad approach to the economy, Microeconomics is quite different. Instead, microeconomics focuses on key agents of the economy. People or entities, such as households, workers or
…show more content…
What was interesting about the article I found on Business Insider is how, and why these events can impact microeconomics and that over the weeks to come we may find changes in the market and certainly the price of oil, according to the article, in the short term. It has been suggested, that the production, or availability of oil originating in Russia and Iran may be interrupted. This is likely to be a short change to the market, one of the reasons for this is because Syrian oil production, although a large reserve had ceased over three years ago (Holodny,
Get Access