The economy refers to the system of production, distribution, and consumption of goods and services within a society or geographical area. It encompasses various activities and interactions among individuals, businesses, and governments, influencing how resources are allocated and utilized. Economies can be classified into different types, such as traditional, command, market, or mixed economies, each defining how economic decisions are made and how resources are controlled.
Key components of an economy include the labor market, capital, production methods, and consumption patterns. The performance of an economy is often measured using indicators such as gross domestic product (GDP), unemployment rates, inflation rates, and balance of trade, which help assess its health and growth potential. Additionally, economies are influenced by external factors, including international trade, financial markets, and government policies. Overall, the economy plays a crucial role in determining the standard of living and overall welfare of a population.
```html The global economy is under strain due to tariffs and bold policy changes, with the U.S. leading a shift away from multilateral agreements. High tariffs, such as 25% on…