The Relationship between Micro and Macro Levels of Economic Performance

Introduction
There are two core jurisdictions in economics; microeconomics and macroeconomics. Macro level recital of economic performance involves the decisions made by individual goods and services market (Fatima, 2010). On the other hand, macro level recital is based on the decisions that influence the entire economy such
as gross domestic product and inflation among others. Business performance at the micro level therefore affects the whole process of economic progress. The decisions made in single markets have an integral role in the overall performance of the economy of the nation thus a bridge between the macro-level and micro-levels economic presentation (Carvalho, 2014). This paper looks at the relationship between the macro and micro levels of economic performance.
The Relation between Micro and Macro Levels of Economic Performance
Economists have established a plausible link between macroeconomic and macroeconomic levels of economic performance. The decisions made in the single markets at the micro levels have significant effects on the perfect performance as well as development of the economy.  Fatima (2010) note that there is an integral role played by governments in setting standard prices for commodities and services in nations. Fatima (2010) further opines that this is so because the prices and demand go a long way in influencing the general economy of the nation .When the supply and demand do not balance at the micro-economic level, the demand there is an elevation in demand calling for the need of supply to meet the demand. Consequently, consumption of goods and services increases as well (Carvalho, 2014). The converse is true, in that when consumption is higher, then the supply side has to be increased so as to cater for the increased demand that accompanies consumption (Fatima, 2010). The entire economy of a nation is therefore influenced since there is a tight bond between the single markets and the macro level of the economy.
Macroeconomic level has the employment as one arsenal factor, being that it begins right from the single businesses at the microeconomic levels and extends high up into the overall performance of the economy of the nation in question (Fatima, 2010). The success of single businesses at the microeconomic level assures the success of the general economy of a nation. Carvalho (2014) asserts that the government has therefore the role of setting the prices at the market as well as determining the tax that shall be levied on each commodity that comes in or that within the country. The micro level is therefore the determinant of how well or bad the overall performance of the economy is (Fatima, 2010).. Based on the relationship between the two levels, much analysis is done at the micro level so as to predict the stability of the economy (Fatima, 2010). There are some checks in place to ensure success at the macro level such as minimum wages, standardized pricing and taxation.
The economic growth of a particular county, analysis of the stability of the economy and policy making and implementation are in place for the good of the economy of countries. The aforementioned tenets are meant to minimize inflation therefore assuring growth of the entire economy (Fatima, 2010).. Being that they revolve around micro and macro levels a relationship between the two levels is forged. According to Carvalho (2014) taxation especially, acts as a link between the micro and macro levels in that even at the level of single markets there are tax levied extending all the way into corporations owned by the governments.
Conclusion
There is a close relationship between the macro and micro levels of economic performance as elucidated as seen in the paper. The two realms of the economy depend on each other in that the success of one means a corresponding success of the other.  While the macro level recital deals with the general economy, the micro level looks at the demand and supply balance in single markets. However, the decisions made at the macro level trickle down to influence the micro level that in turn reacts as directed for the success of the entire economy. There is therefore a correlation between the two levels that are linked with taxes as have been seen in the paper.

References
Carvalho, V. M. (2014). From Micro to Macro via Production Networks. Journal of Economic Perspectives, 28(4), 23-48.
Fatima, M. (2010). Relationship between micro and macro level economic performance: a case for strategic management in Pakistan. International Journal of Sustainable Strategic Management, 2(4), 335-364.