In order to understand the major concepts well, economics is classified as macro economics and micro economics. Though both these topics cover entirely different sections, not only are they interlinked, but they are interdependent to a huge extent.Micro economics, as the word 'micro' suggests, is the study of smaller sections of the economy, something like individual earning sectors. Macro economics, on the other hand, deals with the study of the entire economy, all its income, expenditure, policies, general price level, exchange ratios etc.

Though macro economics and micro economics deal with entirely different aspects of the subject, they’re not entirely different. In fact, for the economy to be successful, both these branches need to work together, to bring out profitable results. Macro economics helps elaborate on small topics essential for the working of micro economics. On the other hand, micro economics helps in building a successful economy by acting as its base pillar.

The simplest way to understand the inter dependence of micro economics and macro economics is by considering any large economy. Here, the total income and profit/ loss incurred by the economy, is the sum total of the earning and expenditure of the millions of small enterprises. Similarly if the entire economy adopts the wrong policy, it affects every individual financially. So it is best for every part of the system to work together and achieve optimum results, in this case maximum profit.

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