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What are the Methodological differences between microeconomics and macroeconomics?

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What are the Methodological differences between microeconomics and macroeconomics?
posted Jul 11, 2017 by Anushka

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Macroeconomics is the branch of economics that deals with aggregate economic decision or behavior of an economy as a whole; for example, the problem of inflation, level of unemployment, and payment of a deficit. To put it simply, it studies the economy as a whole. In contrast, Microeconomics is the branch of economics that studies the behavior of an individual decision-making unit such as an individual firm, their relationship with the market, at what price to set a commodity, how much of a commodity should be produced, how an individual uses their income to maximize satisfaction, and how the price of each commodity in the market is affected by the forces of supply and demand. For example, macroeconomics deals with GDP, inflation, interest rates, and unemployment.

answer Jul 12, 2017 by Prajwal C.m.
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