Macroeconomics vs. Microeconomics

     My very good friend Joao Rojas requested a post that explained the difference between macroeconomics and microeconomics.  Joao Rojas, this post is dedicated to you!!!
     Microeconomics is crucial to comprehend before understanding macroeconomics.  Microeconomics focuses on the smaller parts that make up the entire economy.  Specifically, it looks at individuals and small companies and how they relate to supply and demand.  Microeconomics is important because it shows businesses the right price for certain items, based upon supply and demand models.  Microeconomics also studies the conditions for perfect competition, and the makeup of market failure.  Now for some examples:
I am selling pecans from my backyard.  There was a prosperous pecan season this year, so my competition also has a lot of good, solid pecans.  Not many people really want to make pecan pie this season, so we have a ton of pecans with not many people interested in buying them.  Therefore, the price of pecans will go down.

I had a great pecan season this year.  Luckily, my competitors' pecans are small and few in number.  EVERYBODY wants to make pecan pie.  There is a high demand for pecans, and a small number of them.  Since I have the best pecans, I can raise the price.  Success!! 
Those are very simple examples of supply and demand in microeconomics.  It usually also considers the consumer demand theory, theory of production, cost of production, and labor economics.  If the workers caring for my pecans are paid an exorbitant amount of money, then the price I sell my pecans at will be affected.  Now on to macroeconomics.
     Macroeconomics deals with the structure and behavior of the overall economy.  Often times, macroeconomics is influenced by microeconomics.  The unemployment rate will affect the number of workers a business will hire, and vice versa. Macroeconomics studies the unemployment rates, GDP, GNP, investments, savings, inflation/deflation, and international finance.  Macroeconomics is the big picture.
     One must understand both macroeconomics and microeconomics in conjunction because they often go hand in hand.  Varying levels of inflation and deflation will force businesses to adjust their prices.   Unemployment rates will affect the hiring of employees for companies.  Joao Rojas, I hope you now understand the basics between microeconomics and macroeconomics.  For everyone else, if there is a specific topic you would like me to touch upon, feel free to suggest it in a comment!