Answer to Question #80092 in Microeconomics for Usman

Question

Branches needed to study economics

Answer 1

The two main branches of the economy are microeconomics and macroeconomics. Microeconomics studies the decision-making processes of individual economic units - firms, households and government agencies. Macroeconomics studies the economy as a whole, based on an analysis of aggregated indicators, such as price level, employment, national income.
If microeconomics analyzes production in individual firms and industries, then macroeconomics considers national production. Microeconomics deals with the prices of individual goods and services, and macroeconomics - the aggregate level of prices. Microeconomics studies the patterns of distribution of various types of income, and macroeconomics - the national income. Microeconomics studies employment in individual firms and industries, and macroeconomics - employment and unemployment in the economy.
Microeconomics and macroeconomics are closely interrelated. Understanding individual solutions at the micro level is very important for understanding the processes taking place at the macro level. Government actions to provide public goods are investigated by microeconomics, but they can also be studied by macroeconomics, as they are part of state economic policy.