The prefix macro- is normally used for large things like macroeconomics and macroscopic. How did it come to be used to describe text macros in the programming world?
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In computing, "macro" was first used with assemblers, which are utilities that perform simple translation of readable mnemonics into machine instructions. Normally a single line in an input to a basic assembler produces a single machine instruction output; the line is commonly referred to as an instruction. Productivity was increased when the use of what were termed macro-instructions were invented. Macro- is of course a standard prefix from the Greek meaning large, and a macroinstruction was a new kind of input line which would generate several machine instructions.
The OED shows a revealing quote from 1959:
This shows use of both the full form, macro instruction, and the abbreviated form, macro. (Quote is from Greenwald & Kane, "The Share 709 System: Programming and Modification", Journal of the ACM 6:133. SCAT ("Symbolic Coder And Translator") was an early macro-assembler.)
From the Computing Dictionary:
Another explanation is that it is a shortening of "macroinstruction" which means:
To follow on from mgkrebbs' fine answer, the SCAT in question is a SHARE 709 assembly program: "SHARE Compiler, Assembler, Translator". Both SCAT and macro are mentioned in papers presented to the Association for Computing Machinery and IIT Research Institute in 1958.
The next, IITRI's Computer Applications: Proceedings, shows we might have called them pseudos:
Finally, macroinstruction is found in 1956's Proceedings of the Western Joint Computer Conference: