The economy refers to the system of production, distribution, and consumption of goods and services within a society. It encompasses various activities that contribute to the wealth and resources of a nation, influencing the standard of living and overall prosperity. Key components include labor, capital, and natural resources, which interact to drive economic growth.
Understanding the economy involves analyzing various indicators such as GDP, unemployment rates, and inflation. These metrics help policymakers and economists assess the health of the economy and make informed decisions. A stable economy fosters investment and innovation, leading to improved quality of life for its citizens.