A brief look at Microeconomic and Macroeconomic

Economics is a field that studies how individual fulfill their needs with limited
resources. It is common that people have so many needs yet resources available
are limited. Therefore, individuals must make choices and priorities in fulfilling their
needs and allocate the limited resources efficiently. In studying how people make
their resources allocation, economics divide the field into two branches;
microeconomic and macroeconomic. Clearly, being the branches of Economics in
general, both microeconomic and macroeconomic has it similarities. However, if we
take a closer look, we can see that macroeconomic and macroeconomic have their
own specific characteristics and can stand on their own.
The main difference in microeconomic and macroeconomic is the object of
study. Like its name microeconomic is looking at the small part in economy. The
main object is the individual people, households and firms. It tries to see how the
three objects interacted with each other in order to fulfill their needs and in
allocating their resources. On the other hand, macroeconomics tries to see
Economics in a bigger scale. It studies the economy in the country level, or how a
country fulfills its needs. Therefore, macroeconomic deals with variables such as
unemployment, inflation, interest rates, that directly affect a country policy in the
economy.
Because of the nature of the subject, researchers tend to have more disputes
in macroeconomics level than in microeconomics. The reason is because decisions
and results of microeconomics can usually be predicted more precisely than
macroeconomic measures. On the contrary, it is easier to have differences in
opinion in the macroeconomic level. Even the well known and respectable
economists tend to have differences in the macroeconomic policy. Actually, this
phenomenon is quite understandable since macroeconomics deals with a lot of
different variables that can affect the future of a country and its people. A small
difference in calculation can affect a lot of people life condition. Whereas in
microeconomic, the effect will only be limited to the households or firms involved.
Thus, making economics tend to be more careful in deciding policies in the
macroeconomic level.
In terms of a country policy, there is also a division between microeconomic
and macroeconomic variable. Since the variables used in microeconomics are
variables dealing directly with households and firms, such as demand, supply, tax
and subsidy, the fiscal policy is used to deal with microeconomic problems.
Meanwhile, monetary policies are working with variables such as money demand,
interest rates, and inflation rates were used to deal with problems that occur in the
macroeconomic level. Therefore, it is widely known that a micro economist will be in
charge with fiscal policy and a macro economist will mostly involved with monetary
policy.

Finally, though there are a lot of differences in microeconomics and

macroeconomics, the two sectors are still in the same line of economics. When an
economist wants to make a policy in one of the sector, they need to also think about
the effect that might happen in the other sector. An economist can not only think of
the benefit of only one part of the economics if it means will harm the other part.
We need to remember that the ultimate goal of economics policy is the effective
allocation of resources that will ensure welfare of people in general. Thus, a good
economist should always balance the use of microeconomics and macroeconomics
in creating their economic policy.