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Can we say macroeconomics is top down approach and microeconomics is bottom up approach .Is there any relation/connection between macroeconomics and microeconomics.

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Can we say macroeconomics is top down approach and microeconomics is bottom up approach

This is not entirely true for present day macroeconomics. Present day macroeconomics (e.g. macro that came to be after neoclassical synthesis) is built on micro-foundations for most part. That means that both modern microeconomics and macroeconomics generally follow 'bottom-up' approach (e.g. see example of models in Romer Advanced Macroeconomics) if we to define 'bottom-up' as starting from behavior of individual (representative) agents.

However, undergraduate 101 macroeconomics (e.g. Blanchard et al Macroeconomics: A European perspective) is taught without too much microfoundations so for that you could say its 'top-down'.

Is there any relation/connection between macroeconomics and microeconomics.

Yes. Although microeconomics is a study of individual markets, sectors and industries and macroeconomics studies economy as whole they are interconnected. Especially modern day macroeconomics that was developed as a result of neoclassical synthesis stresses models that have micro-foundations. That is the macro model will be derived using in essence microeconomic consumer choice problem, micro firm behavior, labor and capital market and so on and combine it all into a larger model that can describe whole economy. In that sense they are interconnected.

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  • $\begingroup$ Could you recommend some references and some models of top down and bottom up approaches $\endgroup$
    – quanity
    Jun 9 at 11:29
  • $\begingroup$ @quanity I recommend the references in my answer. For graduate macro the Romer book - that’s a rigorous proper macro that is micro founded (so bottom up) for a undergraduate 101 macro that’s more top down see Blanchard textbook referenced in my text $\endgroup$
    – 1muflon1
    Jun 9 at 11:36

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