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Economics is the study of how limited resources are allocated to meet unlimited wants. It is divided into two main branches: macroeconomics and microeconomics. Macroeconomics focuses on the overall economy, examining factors like Gross National Product (GNP), inflation, unemployment, and recessions. In contrast, microeconomics looks at individual decision-making, covering areas like budgeting, lending, accounting, advertising, and marketing. Understanding both aspects is vital for comprehending how economies operate and how decisions are made on various levels.
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