Macroeconomics is the branch of economics that mainly deals with the structure of the economy and its performance as a whole rather than focusing on markets individually. This comprises of national, regional and global economies. The indicators of macroeconomics are gross domestic products, unemployment and price index. Macroeconomics makes attempts to explain the relationship between the following rational factors: national income, output, consumption, unemployment, inflation, savings, investment, international trade and international finance. Microeconomics is based on the following concepts: scarcity, choice and opportunity cost, production possibility curve, demand, supply and market equilibrium, comparative advantage, specialization and exchange.
The determinants of aggregate demand, aggregate supply and macroeconomic equilibrium are used in national income and price determination. Macroeconomics considers the performance of all markets in the entire market system influenced largely by the large subsectors of the economy that is the household sector. Households include all consumers and the business sector that is all firms. Macroeconomics can also be used to study the market interrelationship between two or more trading countries. In a nutshell, the scope of microeconomics includes looking at the success or failure of government policies, taking to consideration that these are the biggest influencers of the market performance.
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