Following points explain the difference between microeconomics and macroeconomics:

The study of cotton textile industry is a microeconomic study.

Macroeconomic paradox is a term that captures the point that what may be true for an individual might not essentially be true for the economy as a whole.

National Income is assumed constant in microeconomics but is considered a variable in macroeconomics.

Air pollution is an externality which reduces welfare of the people.

From the viewpoint of an individual, saving is a virtue. He can deposit his savings in a bank and can earn a regular income. But from the viewpoint of the economy as a whole, saving may prove to be a vice. When everybody saves more, expenditure tends to decline. It causes a decline in Aggregate Demand (AD). A fall in AD causes a fall in investment. Consequently, production and level of employment also fall. The economy may be driven towards the state of depression.

Two macroeconomics events:
(i) Level of employment
(ii) Rate of inflation

Following are the five variables of macroeconomics:
(i) Theory of Income and Employment
(ii) Theory of Money
(iii) Trade Cycle
(iv) Macro Theory of Distribution
(v) Growth Economics

The period from 1929 to 1933 is known as the Great Depression. This period witnessed tremendous decline in the level of output and employment in the countries of Europe and North America. It affected other countries of the world as well. The demand for goods in the market was low, many factories were lying idle and workers were thrown out of jobs. During this period, unemployment rate in USA rose from 3 per cent to 25 per cent while aggregate output fell by about 33%. These events made the economists think about the functioning of the economy in a different way. In other words, w can say that macroeconomics was born as a result of the great depression.

Following are the important features of a capitalist economy:
(i) There is private ownership of means of production.
(ii) Production takes place for selling the output in the market with profit as the primary motive.
(iii) Prices of goods and services are determined by market forces of demand and supply with minimum intervention by the government.
(iv) Consumers are free to choose whatever they can afford.