What is the difference between Micro and Macro?

Micro and macro are both shortened words that deal with economics. Micro is the short form word for microeconomics, while the macro is the short form word for macroeconomics. They are both studies in economics. Micro deals with a specific market of the economy. This is why it is called micro because the market that it studies is smaller. Macro studies the economy as a whole. It is macro because it studies a larger market. Other parts of the economy that microeconomics focus on including the supply of goods and how the economy can affect the price of goods. Microeconomics focuses on other segments of the economy, including unemployment.

Some people may get confused with the differences between microeconomics and macroeconomics because they may seem the same in the beginning. When you say microeconomics, this means that you are studying economics as an individual or when you are analyzing a group or a company whereas macroeconomics is known to be a study of the national economy as a whole.

Usually in microeconomics, you would think there is an effect on the price of the item. Macroeconomics is known to be connected to inflation. Another thing that will be studied in microeconomics is the individual labor market. Macroeconomics will usually focus on employment/unemployment. There are different topics that will be tackled by these two.