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.

BREAKING DOWN '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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RELATED FAQS
  1. Is the Social Security administration part of the executive branch?

    The U.S. Social Security Administration, or SSA, is an independent government agency under the purview of the executive branch. ... Read Full Answer >>
  2. What are the main risks to the economy of a country that has implemented a policy ...

    The main risk to the economy of a country that has implemented a policy of austerity is the potential for a self-reinforcing, ... Read Full Answer >>
  3. How does the notion of the American Dream influence the US economy?

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  4. Does raising the minimum wage increase inflation?

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  5. What are some popular ETFs that track the industrial sector?

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  6. What does a large multiplier effect signify?

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  7. How does the long-term outlook of the Internet sector compare to the broader economy?

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  8. What is the difference between structural unemployment and cyclical unemployment?

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  9. How does automated work affect structural unemployment rates?

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  10. Is the substitution effect negative for consumers?

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  11. What is the difference between frictional unemployment and structural unemployment?

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  12. What countries contribute the largest weight to the global electronics sector?

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