Introduction to Micro and Macro Economics

Economics is divided into Microeconomics, which studies individual economic units like households and firms, and Macroeconomics, which examines the economy as a whole, including aggregates like inflation, unemployment, and national income. Microeconomics uses a slicing method, focusing on price theory and individual behavior. Macroeconomics uses a lumping method, focusing on income theory and aggregate variables. Both branches are interdependent and crucial for understanding the complexities of economic systems.