| Micro | Macro |
| 1.It deals with the behaviour of individual economic units. | 1. It deals with the study of the economy as whole. |
| 2. Demand and supply are the main tools of analysis. | 2. Aggregate demand and aggregate supply are the main tools of analysis. |
| 3.It explains how resources are allocated among various goods and services and how N.I. is distributed in the economy. | 3. It explains how productive capacity and N.I. of the country increase over time. |
| 4.It is concerned with the determination of equilibrium level of prices of goods and services of a firm. | 4. It is concerned with the determination of equilibrium level of output, employment and income etc. of the economy. |
