Difference Between Micro and Macroeconomics

Macroeconomics analyses the economic aggregates of the system like national income, total employment, general price level and the like. But microeconomic studies the behaviour of individual economic units like a particular firm or an individual consumer. Since the behaviour of economic aggregates is different from the behaviour of individual economic units, their separate study seems to be justified. If we compare the both, the following points of difference attract our attention

1. Macroeconomics studies the economic system as a whole, but microeconomics studies particular units in it. In other words, in microeconomics, the unit of study is the part rather than the whole.
2. Macroeconomic analyses the theory of income and employment. But microeconomics generally deals with the theory of price.
3. Microeconomics assumes total output and income to he given and constant. But in macroeconomics, these are subject to change and it studies the causes of this change.
4. Microeconomic theory depends on the technique of partial equilibrium analysis on the assumption of ceteris paribus (other things remaining constant). Macroeconomic theory on the other hand, depends on the technique of general equilibrium analysis.
5. In microeconomics, we assume the prevalence of full employment in the economy as a whole., But in macroeconomics, we assume a situation of less than full employment, otherwise known as the situation of underemployment equilibrium.
6. Microeconomics assumes general price level as given and relative price of goods and services to be variable. But macroeconomics regards relative prices as given and general price level to be variable.
7. Microeconomics deals with the allocation of resources among competing uses. But macroeconomics deals with optimum utilization of total resources.