Types of Economics
The term economics is very common and Economics can be broadly classified into two parts:
MICRO ECONOMICS: in microeconomics we study “I” which means individual. It means in micro economics we study everything from the point of view of individual. The word micro itself means small. In micro economics we study individual firm, individual producer, individual consumer etc.
So here we study all the theories related to the producer i.e. theory of production, theory of supply: Theories related to the consumer i.e. theory of consumer behavior, theory of demand: along with this we also study the theory of price determination through supply and demand forces. So everything here is at small level or individual level.
MACRO ECONOMICS: in microeconomics we study “A” which means aggregate. It means in macro economics we study everything from the point of view of totality. The word macro means large. In micro economics we study about aggregate demand and aggregate supply. So here we study all the theories related to the aggregate demand and aggregate supply, theory of inflation, theory of deflation, inflationary gap and deflationary gap, monetary policy, fiscal policy, government budget, foreign exchange policy etc. So everything here is at large level or at aggregate level.