are studied individually, whereas; from the second viewpoint, the same units of persons, families, firms etc., are studied in a combined form.

Importance of Micro economics. Macroeconomics is the study of aggregates and averages […] Macroeconomics studies the nature, causes and consequences of such obstacles. It would explain individual behavior, individual I outputs, incomes and prices and the sums or averages of individual results I would constitute the aggregates which macro economics is concerned". Macroeconomics, on the other hand, is the study of a national economy as a whole. Meaning : It is that part of economic theory which studies the economy in its totality or as a whole. In recent years, division of economic theory into two separate parts has gained much importance. "Actually, the line between macro economics and micro economics theory cannot be precisely drawn. Introduction to Macro Economics – Nature, Scope, Importance & More The term ‘Macro’ has been derived from a Greek word ‘Macros’ meaning ‘large’. Before discussing the importance Of Microeconomics, let us know what the Microeconomics is.

Micro-economics occupies it very important place in the study of economic theory. The theoretical and practical importance of macro economics is briefly discussed as: 1. These approaches help us to study the nature of economic problems. … Microeconomics is the study of economics at an individual, group or company level. It helps to solve economic problems like poverty, unemployment, inflation, deflation etc., whose solution is possible at macro level only (in other words, at the level of the whole economy). Microeconomics focuses on issues that affect individuals and companies. Microeconomics is important to understand the working of free market economy.

Key Differences between Micro and Macro Economics. It was Ragnar Frisch who used these two terms for the first time in Economics.

The difference between micro and macro economics is simple. It is helpful in understanding the functioning of macro economics system.

It is highly helpful in the formulation of economic policies that will promote the welfare of the masses. It studies the issues of the economy …

With a detailed knowledge of the functioning of an economy at macro level, it has been possible to formulate correct economic policies and also coordinate international economic policies. It has both theoretical and practical importance.

an individual, household, firm, or industry.

It studies not individual economic units like a household, a firm or an industry but the whole economic system. The popularity of micro-economics has been growing.According to R.G.D Allen "Macro-economics is growing so fast in last three decades that it has brought great changes in the structure of economic theories."

Importance of Macroeconomics : Macroeconomics is considered as an important method of economic analysis. A true general theory of the economy would clearly embrace both. In the present times, the study of economics is done from two viewpoints namely Micro and Macro.From the first viewpoint, the economic problems of various units, like – individuals, families, firms etc. ADVERTISEMENTS: Macroeconomics: Meaning, Scope and Importance of Macroeconomics! Microeconomics is the study of individuals' and businesses' decisions, while macroeconomics looks higher up, at national and government decisions. With growth of globalisation and WTO regime, the study of macro-economics has become more important. It also studies the functioning of global economy. One of them is called Microeconomics and the other is called Macroeconomics.These two terms microeconomics and macroeconomics were first coined and used by Ranger Frisco in 1933. It tells us as to how the prices of the products and the factors of production are determined. 2. ADVERTISEMENTS: Importance and Uses of Microeconomics! The points given below explains the difference between micro and macro economics in detail: Microeconomics studies the particular segment of the economy, i.e. Introduction to Micro Economics. Importance Of Microeconomics Microeconomics and Macroeconomics are two approaches forwarded by economists. Micro and Macro Analysis: In recent years, the subject matter of economics is divided into two broad areas.
Importance of Macro-Economics: It is helpful in understanding the functioning of a complicated economic system. The importance of macro-economics can be analysis on the basis of following headings: 4. Microeconomics occupies a vital place in economics and it has both theoretical and practical importance. Balance of payments: Macroeconomics is also concerned with the problems relating to the balance of payments and foreign aid of a country.
Asked in Macroeconomics Thus, Macro Economics is the study and analysis of an economy as a whole.

From the theoretical point of view, it explains the functioning of a free enterprise economy. Till recently, especially before Keynesian Revolution, the body of economics consisted mainly of microeconomics.