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Relative Importance of micro economics and macro economics

Micro economics or macro economics are complementary to each other. There are differences between the scopes of micro economics and macro economics. In spite of it, these two branches of economics are not competitive or substitute to each other. Rather these two are complementary. The mutual dependency relations between the two are discussed below.

1. Micro economics discusses the activities of an individual or an individual institute. For complete economic analysis both micro and macro analysis is needed.

2. A root of any problem cannot be measured without macro analysis. On the other hand, without macro level analysis over all evaluation of anything is not possible. Really partial representation of anything cannot help to draw conclusion.

3. Sometimes a change in a micro variable may be the causes of change in macro variable. Similarly sometimes a change in macro variable may be the cause of change in micro variable. For example, if aggregate demand increases then demand for individual goods separately increases. For that family income may increase. In this way per capita income, per capita production, employment opportunity, production cost firm may be changed for change in aggregate income. Moreover it, the value of micro variable may influence the macro variable. For example, a change in individual, family and firm productivity may change for the changes of national income.
Therefore, micro analysis and macro analysis both are mutually dependent on each other. The sum of micro is macro and part of macro is micro. Macro analysis is impossible without micro analysis.

For proper and complete analysis of economic system of a country neither micro economics nor macro economics is a complete one as unique basis and both micro & macro analysis are necessary. The economist Professor Samuelson truly said ‘There is no opposition between micro and macro economics. Both are absolutely vital’.