Economy

Definition

The economy refers to the system through which goods and services are produced, distributed, and consumed within a society. Federal agencies have the power to regulate aspects of the economy such as monetary policy, banking regulations, trade policies, and fiscal measures.

Related terms

Fiscal Policy: Government decisions regarding taxation and spending that impact the overall economy.

Monetary Policy: Actions taken by central banks (e.g., Federal Reserve) to manage the money supply and interest rates in order to influence economic stability.

Globalization: The increasing interconnectedness of economies around the world through trade, investment, and cultural exchange.