Macroeconomics is the combination of two words: “macro”+ “economics” where ‘macro ‘is derived from Greek prefix ‘macros’ which means large. Macroeconomics studies the economy at a large level including the performance, structure behavior, and decision making of whole economy. It involves national, regional, and global economies. Models developed by macro economists explain the relationship between factors such as:-
Micro economy attempts to understand the cause and consequences of short – run fluctuations in the national income as well as determinates of long run economic growth.