What are the two main branches of economics?

The two main branches of economics are microeconomics and macroeconomics. Microeconomics focuses on individual economic units, such as consumers and firms, analyzing decision-making processes, resource allocation, and market interactions. It examines how these entities interact in various markets and the factors that influence their choices and behavior.

On the other hand, macroeconomics addresses the economy as a whole. It studies aggregate indicators such as national income, unemployment, inflation, and overall economic growth. Macroeconomics encompasses broad policies that governments might use to influence economic performance, such as fiscal and monetary policies.

Understanding these two branches is essential for analyzing economic phenomena and policy-making effectively, as they provide different insights into how economies function at both individual and collective levels.