Which branch of economics studies the economy as a whole?

Macroeconomics focuses on the economy as a whole, analyzing large-scale economic factors. This branch studies aggregates such as national income, overall employment rates, inflation, and the total output of the economy, often through indicators like GDP. By examining these large-scale dynamics, macroeconomics aims to understand how economies operate and how they can be influenced by governmental policies and other external factors.

Microeconomics, in contrast, looks at individual consumers and businesses, focusing on their behavior and decision-making processes. Behavioral economics studies how psychological factors influence economic decisions, while development economics looks at the economic aspects related to the development of poorer regions and nations. All of these branches play important roles in understanding economic systems, but only macroeconomics is concerned with the overarching performance and trends of the economy as a whole.