Economics, put simply, is the study of shortages – supply vs. demand. As the demand for a product or service rises, the price of those goods or services will tend to rise. Alternatively, if the provider of those goods or services tries to flood the market with those goods or services, the price will tend to decline as the supply outpaces the demand. The supply and demand model works for all goods and services including stocks, bonds, real estate, and money.

Gross Domestic Product

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