Answer:
Macroeconomic analysis examines the overall economy, focusing on aggregates like GDP, inflation, and unemployment. Microeconomic analysis, on the other hand, delves into individual entities, studying their behavior in markets, prices, and production.
Step-by-step explanation:
Macroeconomics looks at the big picture of an economy. It deals with large-scale economic factors like the overall level of production in the economy (Gross Domestic Product - GDP), the general price level (inflation), and the overall employment level. Macroeconomics is concerned with how these variables interact to influence the economy on a national or global scale.
Microeconomics, on the other hand, zooms in on individual economic units. It focuses on the behavior of individual consumers, firms, or industries. Microeconomics looks at how individual agents make decisions about what to buy, sell, or produce and how their interactions in markets determine prices.