1. Micro Economics is the study of the problems of the individual units whereas Macro Economics studies the problem all the units collectively.
2.Micro Economics relates to price determination whereas Macro Economics is related to National Income.
3.Micro Economics studies small variables which have very little influence and can not affect the whole economy. For e.g. consumption of a single consumer or production of a single producer can not influence the whole economy. Macro Economics explains some important relationships obtained under the situation of micro statics equilibrium. It explains the macro variables in an equilibrium position. It can be explained through this equation-
Y = C+I
where Y = TOTAL INCOME
C = TOTAL CONSUMPTION EXPENDITURE
I = TOTAL INVESTMENT
Above equation does not study adjustment process but makes it clear that Nation's total income is equal to the addition of Nation's total consumption and total investment.
4.Micro Economics deals with small segment of economy and Macro Economics deals with aggregate economy.
5. Micro Economics works on principle that market soon create equilibrium. In Macro Economics the economy may be in a state of disequilibrium (boom or recession) for a longer period..
6. Micro Economics tends to work from theory first, Macro Economics places greater emphasis on emperical data and try to explain it.
7. There is little debate about the basic principles of Micro Economics. There are different schools of Macro Economics offering different explanations e.g. Keynesian, Monetarists, Real business cycle theorists etc.
8.It can be said that Micro Economics is concerned with supply and demand in individual market, individual consumer behaviour, individual labour market etc.whereas Macro Economics is concerned with monetary and fiscal policy e.g. what effect does interest rate have on whole economy, reasons for inflation and unemployment, economic growth, international trade and globalisation, reasons for differences in living standards and economic growth between countries, Government borrowing etc.
