what is micro and macroeconomics and what is the difference?
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Micro – is Greek for small, so microeconomics means economics (study of how things are organized), applied to small case studies, i.e. every day stuff, e h. How is your salary set, how much should a business charge for a product, should I invest in company X.
Macro is Greek for big, so the study of big tendencies, let’s say it’s bit more theoretical, e.g. what is the effect of higher in interest rates on the American economy or in general, that would be macroenomics vs how higher interest rates affect me or a specific company would be microeconomics.
Now you probably realized that these two things are related it’s very similar to thinking bottom up vs top down, bottom up goes from small details to discover see some truth, where top down tries to look at the big picture, and then dives to details if necessary.
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