In the world of macro or micro economics, the two main kinds of economics is macro and micro. Micro is a type of economics that studies the behavior of an economy through small segments and micro is a type of economics that studies the behavior of an economy by analyzing many smaller economies. For example, microeconomics is the study of economies in the individual household. While macroeconomics is the study of economies in the economy as a whole.
Microeconomics are generally focused on the behavior of the economy in the personal sphere, while macroeconomics is more macro-oriented and has to do with the overall behavior of the economy. Because micro is smaller than macro, micro economics tends to be very localized, this may include a city, state, or even an entire country. While it is possible for a micro economy to have macro behavior, it is very rare as compared to macro.
Microeconomics has been known to have some major flaws when compared to macro, one of which is price theory. With micro economics there is a tendency for things to be priced in a certain way because that is what has happened for a long time, but if you look at the bigger picture, what really happened is that the micro-economic agents made their decisions at the speed at which the market allowed for. This means that the prices of goods and services did not change because the micro economic agent was able to wait out the effects of the macro-economic forces that caused the micro economy to happen in the first place. Because micro-economies cannot hold macro economies at bay, it is extremely difficult for them to make any real changes to the macro-economic environment.
Microeconomics has also been known to have some major flaws in its theory when compared to macro. For example, in micro economies there is a tendency for money to move around very quickly, and this results in prices being very high in the short-term as the economy moves into a period of slow recovery. This short-term price rise in the economy tends to push people away from the economy because they feel it is going to return to where it was before. This means that many people are not making investments, they are spending money they don't have, and they are not investing in things that will benefit them in the long run. Instead, they are just spending money they already have on things that will help them get by until the next paycheck.
Because microeconomics cannot hold macro economies in check, it has the tendency to cause economic bubbles, such as the Great Depression. This is because the small economies tend to create the conditions in which the large economies need to grow to take advantage of these small economies.
However, the good thing about macroeconomics is that it can hold back the bubbles from occurring in the economy. The best way that we know how is through central planning, which gives the economy the time and space that it needs to recover. If the economy were left alone and left to it's own self then it is very hard for it to grow.