Branches of Economics

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The subject of Economics is today divided in two major subfields:

  1. Microeconomics, and
  2. Macroeconomics

Microeconomics is the branch of economics which is concerned with the behavior of individual entities such as markets, firms, and households.

Adam Smith is considered the founder of Microeconomics.

Macroeconomics is concerned with the overall performance of the economy.

John Maynard Keynes who published the General Theory of Employment, Interest and Money is considered as the founder of modern Macroeconomics.

In addition to microeconomics and macroeconomics, economists have developed a specialized technique known as econometrics which is concerned with the use of statistical methods to obtain empirical results for economic relations.