What branch of economics focuses on the overall behavior and performance of an economy?

Macroeconomics focuses on the overall behavior and performance of an economy. It examines large-scale economic factors, such as national income, gross domestic product (GDP), unemployment rates, inflation, and overall levels of government spending. This branch of economics analyzes how these factors interact and influence the economy as a whole, rather than the individual components or smaller segments that microeconomics might examine.

In contrast, microeconomics studies the decision-making processes of individuals and firms, looking at how they allocate resources and respond to price changes within specific markets. Behavioral economics considers the psychological factors that can influence economic decisions, emphasizing how cognitive biases affect individuals' economic behaviors. Developmental economics explores the economic aspects of the development process in low-income countries, focusing on strategies for economic growth and improvement in living standards. Thus, the distinction lies in the scope and focus of each branch, making macroeconomics the correct choice for analyzing the overall economy.