US Economy
Definition
The US economy refers to the economic system of the United States, which is a mixed economy and is characterized by private ownership, free markets, and limited government intervention. It's one of the largest and most influential economies in the world.
Analogy
Think of the US economy like a giant supermarket. There are many different products (industries) available, from food (agriculture) to electronics (technology). The prices (economic indicators) can fluctuate based on supply and demand. The store manager (the government) has some control over what happens in the store but largely it's up to individual shoppers (consumers and businesses) to decide what they want to buy or sell.
Related terms
Gross Domestic Product (GDP): This is like the total sales at our supermarket analogy. It's the total value of all goods and services produced within a country in a given period.
Inflation: This would be like if prices at our supermarket started rising across the board. Inflation is an overall increase in price levels in an economy over time.
Federal Reserve System: This is like our store manager’s boss who sets policies that affect how things run at a macro level. It's America's central banking system that controls monetary policy.
"US Economy" appears in:
Study guides (1)
Practice Questions (6)
- What was a significant change in the US economy from 1980 to present day?
- What impact did Alexander Hamilton’s Federalist Party policies have on US economy?
- What was the major technological breakthrough that helped the US economy to grow rapidly post WWII?
- What economic program significantly aided European countries in their post-World War II recovery and indirectly boosted the US economy?
- What technological innovation had a significant impact on the US economy and lifestyle in the early 20th century?
- Who was responsible for the founding of Standard Oil, a key player in the changing US economy?
Resources
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.