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Economy

Definition

An economy refers to all activities related to production, consumption and trade of goods and services in an area. It includes everything from businesses hiring employees to people buying groceries.

Related terms

Gross Domestic Product (GDP): The total value of all goods produced and services provided in a country during one year.

Inflation: A general increase in prices and fall in the purchasing value of money over time.

Supply & Demand: Economic model which states that price is determined by the interaction between sellers' supply of a good or service and buyers' demand for that good or service.

"Economy" appears in:

Subjects (6)

AP Human Geography
AP Macroeconomics
AP US Government
AP US History
AP World History: Modern
Intro to Sociology

Study guides (1)

AP European History - 3.8 Comparison in the Age of Absolutism and Constitutionalism

Practice Questions (4)

Which ideology drew on Enlightenment principles and favored limited government intervention in the economy during the 19th century?
Which country's economy recovered first from the Great Depression?
How did advancements made during the Digital Revolution affect the economy in Europe?
What was a significant contributing factor to the long-lasting stability of the Dutch Republic's economy during its Golden Age?

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