The term refers to the overall financial system of a country involving production, consumption, trade, employment, investments, and other economic activities that impact its wealth and standard of living.
Related terms
Gross Domestic Product (GDP): A measure of the total value of goods and services produced within a country's borders in a specific period. It serves as an indicator of economic growth and development.
Inflation: The general increase in prices over time, resulting in a decrease in purchasing power. Inflation affects the economy by impacting consumers' ability to buy goods and services and altering the overall cost of living.
Unemployment rate: The percentage of the labor force that is actively seeking employment but unable to find jobs. Unemployment rates reflect the health of an economy, as high levels can indicate economic downturns or structural issues within industries.