Which economic principle involves the study of overall economy-wide phenomena, such as inflation and unemployment?

The correct answer is macro-economics. This branch of economics focuses on the behavior, performance, and structure of an entire economy rather than individual markets. Macro-economics examines large-scale economic factors, such as national productivity, total national income, inflation rates, and unemployment levels. Understanding these phenomena helps policymakers and economists identify trends and implement strategies to promote economic stability and growth.

In contrast, micro-economics looks at smaller segments of the economy, focusing on individual consumers and businesses. Fiscal policy refers specifically to government spending and tax policies as tools for influencing economic activity, while supply-side economics emphasizes the importance of boosting economic growth through tax cuts and deregulation. Macro-economics encompasses a broader scope, making it essential for analyzing large-scale economic issues.