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How well is macroeconomics found upon the principles of microeconomics?

Economics

How well is macroeconomics found upon the principles of microeconomics?

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Macroeconomics is based on principles of micro economy.

  • If an individual is studying impact of deflation on the economy (macroeconomics) he is likely to use same economic principles of microeconomics which is elasticity of demand to change in prices.
  • Demand and supply in microeconomics forms the basis of aggregate/market demand and supply in the economy.

All these studies of microeconomics have led to successful implementation of the macroeconomics theories.

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