Microeconomics vs Macroeconomics

microeconomics is the study of the choices made by households and firms about the allocation of resources, and the price firms and households trade goods and services. microeconomics also takes into account taxes, regulation and government legislation. it focuses on supply and demand and other factors that determine the price levels in the economy (a bottom up approach). microeconomics tries to understand human choices, decisions and the allocation of resources. it does not try to answer or explain what factors should take place in a market. it tries to explain what happens when there are changes in conditions. macroeconomics is the study of the behaviour of a country and how it policies impact the economy. it analyzes entire industries and economies (a top down approach). it tries to answer questions like what should the inflation rate be or what stimulates economic growth.