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.

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.