What is the difference between microeconomics and macroeconomics?

Microeconomics studies the behaviour of individual economic units such as a single consumer, a firm, or a particular market. It deals with how prices of individual goods are determined, consumer choice, demand and supply for one product, and the output of a single firm. Its tools are demand, supply, and elasticity. Macroeconomics studies the economy as a whole, looking at aggregates such as national income, total output, general price level, employment, and economic growth. Topics like GDP, inflation, unemployment, and government budget belong to macroeconomics. A simple way to remember: micro means small (individual units, the trees), while macro means large (the whole economy, the forest). Micro is also called price theory because it explains how individual prices form, while macro is called income and employment theory. Both are interdependent and together give a complete picture of how an economy works.