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How does the economy work?

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The economy is a complex system of production, distribution, and consumption of goods and services. Understanding how the economy works can be challenging, but it is essential for making informed decisions about personal finance, investing and public policy.

This article will explore the fundamental concepts of how the economy works, including the factors that influence it and the various components that make up the economy.

Government policies

Interest rates

International trade

Households

Businesses

Government

Gross domestic product (GDP)

Unemployment rate

Inflation rate

Consumer Price Index (CPI)

Retail sales

Industrial production

Housing starts

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