Difference and Interdependence between Microeconomics and Macroeconomics

Difference between Microeconomics and Macroeconomics

Microeconomics	Macroeconomics
It is the study of individual units of the economy.	It is the study of economics as a whole.
It studies economic units such as consumer, households, a firm, etc.	It studies national aggregates such as national output, aggregate output, total employment.
The central problem is price determination of individual commodities and factors of production.	The central problem is determination of income, employment and output of the economy.
It is based on partial equilibrium analysis.	It is based on genera equilibrium analysis.
It is static concept	It is dynamic concept.
It is also called price theory or value theory.	It is also called Theory of Income and Employment or Keynesian Theory.
It is worm's eye view to see the economy.	It is bird's eye view to see the economy.

Interdependence between Microeconomics and Macroeconomics:

Ways through which microeconomics and macroeconomics are interrelated to each other:

1. How much should a firm pay for the services of a labor? Since the question relates to a particular firm it comes under microeconomics but the wages of one firm is related to and depends upon wages of other firms in the locality which comes under macroeconomics.

2. Society is the sum of individuals which come under the microeconomics. Individuals make up community, many firms constitute to make industry and many industries collectively make up an economy. One cannot get the proper idea of the working of the entire economic system except through individuals, households, firms and industries.