Which of the following options fit best to the given sentence?
Macroeconomics and microeconomics are ___________ .

Complementary to each other

The correct answer is option 1: Complementary to each other

Macroeconomics and microeconomics are complementary to each other. They are two distinct branches of economics that study different aspects of the economy. Microeconomics focuses on individual economic units such as households, firms, and markets, while macroeconomics examines the economy as a whole, including aggregate variables like GDP, inflation, and unemployment. Understanding both microeconomic and macroeconomic principles is essential for gaining a comprehensive understanding of how the economy functions at both the individual and aggregate levels.

While they focus on different levels of analysis, macroeconomics and microeconomics are interconnected and complementary in the following manner:

• Macroeconomic phenomena are often the result of aggregated microeconomic decisions. For example, overall consumption in the economy (a macroeconomic variable) is the sum of individual households' consumption decisions (a microeconomic variable).
• Microeconomic decisions are often influenced by the overall macroeconomic environment. For instance, a firm's investment decisions (microeconomic) can be affected by interest rates and economic growth forecasts (macroeconomic).
• Understanding both perspectives provides a more complete picture of how the economy works. Policies aimed at influencing the macroeconomy often have microeconomic impacts, and vice versa.