What is the difference between micro and macro economics?

Microeconomics is the study of individual choice.  It explores the economic way of approaching problems, and how that way creates a general cost/benefit method of analyzing problems. It looks at such issues as the effect of taxes on incentives to work, tariffs and the debate about free trade.

Macroeconomics is the study of the aggregate economy.  It explores economist’s thinking about problems of recessions, depressions, unemployment, inflation and growth.  It is more problem and institutionally oriented than is micro, and studies issues such as monetary and fiscal policy, the financial sector, and the effect of globalization on the US economy.  

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