Macro vs. Micro

In order to analyze the various intricacies of economics, the field is broadly divided into macro and microeconomics. As the prefix suggests, macroeconomics models the economy on a large scale and deals with measures such as gross domestic product (GDP), price levels, unemployment, interest rates and international trade. Thus macro-economics can explain why some countries are rich while others remain poor, why currencies fluctuate the way they do, how countries stay afloat with massive deficits, how interest rates change and what brings on recessions such as the one we face today. Microeconomics on the other hand, details firm/industry level economies such as supply and demand with a market, economies of scale within a company, impact of regulatory policy within a sector. Despite these distinctions, macro and microeconomics are fundamentally interconnected as collective micro- changes affect macro-economic measures. Though each of these topics presents an opportunity for extensive study, the majority of my introductory research will focus around macroeconomics and its implications in our day-to-day life.