Economy

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DEFINITION of 'Economy'

The large set of inter-related economic production and consumption activities which aid in determining how scarce resources are allocated.

INVESTOPEDIA EXPLAINS 'Economy'

The economy encompasses everything related to the production and consumption of goods and services in an area.

The economy and the factors affecting the economy have spawned one of the largest fields of study in human history - economics. The study of economics can be broken into two major areas of focus, microeconomics and macroeconomics.

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