The macro-micro economics difference is very important in economics. It basically shows the size and scope of the whole economy. Economists have a tendency to look at microeconomics as an isolated matter which exists in the market place. However, there is a macro-micro view on the matter, which tries to understand the interrelationship of different economic aspects that exist simultaneously.
The macro-micro view is a combination of micro and macro economics. Microeconomics is usually seen from a business point of view where the business itself is the centre of attraction. However, macroeconomics is more focused on the wider picture of economic activities in the economy. It involves the government and its policies, institutions, and the market itself.
In the market there are a number of factors that influence prices and how they change. They include the demand and supply of goods and services, the demand and supply of money, the supply and demand for energy, the competition among sellers and buyers, and many others. All these factors interact with one another and affect the overall market condition. For example, the price of goods and services increases when the amount of money available to purchase them decreases. This is because the money has to be invested in them to earn the profit. However, the price of products and services will also decrease when the supply of money also decreases.
Macro-micro-economists focus on the interrelationship between the individual elements of the market. There is much more interrelationship among the factors than what is seen in the market. There is an overall effect on the overall economic situation when these interrelationships are analyzed. The study of the interrelationships of these factors enables macroeconomists to find the most appropriate way of dealing with the market conditions.
Macroeconomists usually have a broader scope of influence. The main focus of macroeconomics is not solely on the markets, but also on the governments of countries. Governments can be found in all countries of the world and influence every aspect of the economy including the growth of the production, and distribution of resources, the allocation of profits and losses, and the financial status of the country. They all have a direct impact on how well or badly an economy is doing.
While macro-micro economics is more focused on how the markets function, macroeconomics is more concerned with the overall health of the economy. If these two views are not mixed together properly then the real value of the economy cannot be realized. Hence, it is extremely important that both these views are given equal weight and importance in an analysis.