Interdependence between micro and macro economics Micro and macro-economics are different in their approaches: - Micro studies the individual units of the whole economy whereas, Macro deals with the aggregates and sub-aggregates related to the whole economy - The objective, subjective matter, assumptions etc, of micro economics are different from those macro-economics. But micro and macro are independent. - The objective of the study of economic can’t be fulfilled by the study of only one, micro and macro. - They are independent on each other because the parts affect the whole and the whole effects the parts. - A general economy covers the both micros and macros. - It should explain prices, output, incomes, behavior of individual firm and industry and the aggregates of the individual variables. Dependence of micro on macro economics - Micro economics analyzes problem and behavior of small units of the economy. All micro economic variables are fraction of macro
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