Microeconomics is the study of how prices and quantities are determined through interactions between buyers and sellers (individuals and arms) in individual markets. Therefore, microeconomists are more likely to create models to analyze the decisions of firms (such as pricing) and those of consumers (ouch as shopping choices), as well as how government policies affect those decisions. Macroeconomics is the study of factors that affect the entire economy. Therefore, macroeconomists tend to create models to analyze how aggregate phenomena such as growth, Inflation, and unemployment respond to policy decisions of governments and central banks, changes in goregate spending or savings, and supply or demand shocks