Microeconomics (or price theory) is a branch of economics that studies how
individuals, households, and firms make decisions to allocate limited
resources,[1] typically in markets where goods or services are being bought
and sold.
Microeconomics examines how these decisions and behaviours affect the supply
and demand for goods and services, which determines prices, and how prices,
in turn, determine the supply and demand of goods and services.[2][3]
Macroeconomics, on the other hand, involves the "sum total of economic
activity, dealing with the issues of growth, inflation, and unemployment and
with national economic policies relating to these issues"[4] and the effects
of government actions (e.g., changing taxation levels) on them.[5]
Particularly in the wake of the Lucas critique, much of modern macroeconomic
theory has been built upon 'microfoundations' — i.e. based upon basic
assumptions about micro-level behaviour.
From:
Wikipedia
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