The American economy is one of the largest and most diverse in the world. It is characterized by a mix of industries, including technology, finance, healthcare, and manufacturing. The economy operates on a capitalist system, where businesses are privately owned and compete in a free market. The Gross Domestic Product (GDP) measures the total value of goods and services produced in the country, reflecting economic health. The Federal Reserve plays a crucial role in managing monetary policy, influencing interest rates and inflation to promote stable economic growth.