Q.Distinguish between microeconomics and macroeconomics.

Microeconomics and macroeconomics look at the same economy but from very different scales.

Microeconomics and macroeconomics differ chiefly in scale and in the questions they ask. Microeconomics, also called price theory, studies the behaviour of individual economic units — a single household deciding how to spend its income, a single firm deciding how much to produce, or a single market where the price of one good is determined by that good's own demand and supply. Its key tools are individual demand and supply curves, and its typical questions concern one good or one market at a time — for example, why the price of onions rose this week. Macroeconomics, also called income theory, instead studies the economy in aggregate: national income, the general price level (inflation), total employment, and the overall growth rate. Its typical questions concern the economy as a whole — for example, why the country's inflation rate is rising, or what determines total national output. The two branches are complementary rather than competing: a change in the price of an important input (a microeconomic event) can raise the general price level (a macroeconomic outcome), and a fall in national income (macroeconomic) reduces the demand every individual firm (microeconomic) faces.