Differentiate between Micro and Macro economics.
(i) Micro economics is that part of economics which studies the behaviour of individual economic units. (such as a consumer, a producer, income / savings / investments of an individual, etc.) whereas Macro economics is that part of economics which studies the behaviour of aggregates or averages, which are related with whole economy (such as all the consumers of economy, all the producers of economy, National Income, total savings, total investment of economy, etc.)
(ii) The main subject matter of micro economics is to decide price of commodity and price of means of production whereas the main subject matter of macro economics is to decide the equilibrium level of income and employment of the economy.
(iii) Micro economics is also known as price theory whereas Macro economics is also known as income and employment theory.
(iv) The tools of micro economics are demand and supply whereas the tools of Macro economics are Aggregate Demand and Aggregate Supply.
