What is the difference between Economics MICRO and MACRO?

What's the difference between macro and micro economics?

• I wanted to take an AP economics class. But I only have time for choosing one class. There's AP macro as a class available, then there's AP micro economics class available. I can only take one for now this semester, so which should I get since I havent really been exposed or taken an economics class before? What's the difference, and later this year, I want to take the next class of economics, but of micro/macro which should I best take first? They're .5 credits, so semesters each. Which to take first to benefit me more?

• Answer:

  I recommend you start with micro. Microeconomics is the study primarily of how individual consumers and individual businesses behave in markets. Here's a typical microeconomics question: "If the price of gasoline rises by 10%, how do drivers react? Do they cut back driving by by 5%? by 10% by 50%? or by 0% (i.e., they keep driving as much as they always have)? Given this price increase, do oil companies start exploring for even more oil? Do car companies start making more fuel-efficient cars?" Macroeconomics is primarily the study of the national economy. Here's a typical macroeconomics question: "If the inflation rate rises to 5%, what happens to the nation's Gross Domestic Product (GDP)? What is the effect, if any, on the nation's unemployment rate?" It's best to start with micro because it's easier to 'relate to' than macro. Micro will help you get a good understanding of the basics of supply and demand. That will help you later when you study macro.