<blockquote>
  <p>[...] are there any ways in which Macroeconomics help us to understand the behavior of individual units?</p>
</blockquote>

<p>Putting aside the totological cases in which a utility would directly integrate macroeconomic signals such as, e.g. key-rates, <em>AFAIK, no there are not</em>. </p>

<p>As you mention, Macroeconomics is about aggregate level considerations and/or <a href="https://www.google.com/url?sa=t&amp;source=web&amp;rct=j&amp;url=https://en.m.wikipedia.org/wiki/Accounting_identity&amp;ved=2ahUKEwiSoprCr8LkAhWlyoUKHVmGAY0QFjAAegQIBRAC&amp;usg=AOvVaw3TYEQhOpQQrD6dM1OG0JQX" rel="nofollow noreferrer">identities</a> That being said, you will find theoretical frameworks, such as  <a href="https://www.google.com/url?sa=t&amp;source=web&amp;rct=j&amp;url=https://en.m.wikipedia.org/wiki/General_equilibrium_theory&amp;ved=2ahUKEwj0w9narsLkAhUCyYUKHVDTCwoQFjACegQIEBAG&amp;usg=AOvVaw2zaBuqpWKIHD4daefctD6G" rel="nofollow noreferrer">General Equilibrium Theory</a> that imply/represent <a href="https://www.google.com/url?sa=t&amp;source=web&amp;rct=j&amp;url=https://en.m.wikipedia.org/wiki/Microfoundations&amp;ved=2ahUKEwi36Z7KrcLkAhUpyoUKHaoeCgoQFjADegQIAhAB&amp;usg=AOvVaw0B7CEqFSZiNBhWz7yheS_d" rel="nofollow noreferrer">microfounded behaviours</a> with the intention of adding them up instead of directly dealing with accounting-like macro aggregates.</p>

CC BY-SA 4.0
2019-09-08T23:28:52.140Z
Any question @Varun ?
keepAlive
CC BY-SA 4.0
2019-09-09T00:15:01.980Z
Thanks @keepAlive for your answer. However, in the meantime I read about law of diminishing marginal utility which seems to be using macroeconomics to explain a microeconomic concept. I would request you to please tell me your thoughts on it whether I am thinking correctly or not.
Thank you, again!
Varun Singh
CC BY-SA 4.0
2019-09-09T07:14:03.030Z
You are welcome @Varun. The law of marginal diminishing returns has actually been "discovered" by David Ricardo (microeconomist) and Thomas Maltus, who implies it to explain production (of food), which itself is explained with microfounded *formalisms* see [Production Theory](https://www.slideshare.net/mobile/salasvelasco/microeconomics-production-theory) and [Industrial Organisation Theory](https://en.m.wikipedia.org/wiki/Industrial_organization). Actually, as soon as you model an entity that has an optimization program "in mind", you are "using" micro theory. Any question?
keepAlive
CC BY-SA 4.0
2019-09-09T15:32:31.200Z
Thank you, @keepAlive. your response lended me a lot of clarity. Grateful!
Varun Singh
CC BY-SA 4.0
2019-09-08T23:26:08.820Z
2019-09-08T23:26:08.820Z
keepAlive
<p>Microeconomics concepts greatly help us to understand the broad aggregates which are used in Macroeconomics to understand the overall functioning of an economy  but <strong>are there any ways in which Macroeconomics help us to understand the behavior of individual units?</strong>  </p>

<macroeconomics><microeconomics>
Macroeconomics v Microeconomics
Varun Singh
# Macroeconomics v Microeconomics

(Asked by: username_0 on 2019-09-05)

Microeconomics concepts greatly help us to understand the broad aggregates which are used in Macroeconomics to understand the overall functioning of an economy but **are there any ways in which Macroeconomics help us to understand the behavior of individual units?**

**Tags:** macroeconomics, microeconomics


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## 1 answers

### Answer by username_1 on 2019-09-08. Score: 0 | Accepted answer

> [...] are there any ways in which Macroeconomics help us to understand the behavior of individual units?

Putting aside the totological cases in which a utility would directly integrate macroeconomic signals such as, e.g. key-rates, *AFAIK, no there are not*.

As you mention, Macroeconomics is about aggregate level considerations and/or [identities](https://www.google.com/url?sa=t&source=web&rct=j&url=https://en.m.wikipedia.org/wiki/Accounting_identity&ved=2ahUKEwiSoprCr8LkAhWlyoUKHVmGAY0QFjAAegQIBRAC&usg=AOvVaw3TYEQhOpQQrD6dM1OG0JQX) That being said, you will find theoretical frameworks, such as [General Equilibrium Theory](https://www.google.com/url?sa=t&source=web&rct=j&url=https://en.m.wikipedia.org/wiki/General_equilibrium_theory&ved=2ahUKEwj0w9narsLkAhUCyYUKHVDTCwoQFjACegQIEBAG&usg=AOvVaw2zaBuqpWKIHD4daefctD6G) that imply/represent [microfounded behaviours](https://www.google.com/url?sa=t&source=web&rct=j&url=https://en.m.wikipedia.org/wiki/Microfoundations&ved=2ahUKEwi36Z7KrcLkAhUpyoUKHaoeCgoQFjADegQIAhAB&usg=AOvVaw0B7CEqFSZiNBhWz7yheS_d) with the intention of adding them up instead of directly dealing with accounting-like macro aggregates.

> **Comments:**
> **username_1**: Any question @Varun ?  
> **username_0**: Thanks @username_1 for your answer. However, in the meantime I read about law of diminishing marginal utility which seems to be using macroeconomics to explain a microeconomic concept. I would request you to please tell me your thoughts on it whether I am thinking correctly or not. Thank you, again!  
> **username_1**: You are welcome @Varun. The law of marginal diminishing returns has actually been "discovered" by David Ricardo (microeconomist) and Thomas Maltus, who implies it to explain production (of food), which itself is explained with microfounded *formalisms* see [Production Theory](https://www.slideshare.net/mobile/salasvelasco/microeconomics-production-theory) and [Industrial Organisation Theory](https://en.m.wikipedia.org/wiki/Industrial_organization). Actually, as soon as you model an entity that has an optimization program "in mind", you are "using" micro theory. Any question?  
> **username_0**: Thank you, @username_1. your response lended me a lot of clarity. Grateful!  

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