It All Adds Up
The U.S. economy is a multi-trillion dollar system of production and consumption, but it can be broken down and analyzed. The major players—consumers, businesses, and government—constantly interact with one another. Each interaction, whether it is a purchase or sale, investment or paycheck, tax or loan, constitutes a transaction and a form of economic activity.
It is that economic activity—and the millions of decisions that underlie that activity—that add up to our economy. The same is true of the economies of other nations. Economics is the study of the interactions of these various players, and of the motivation behind and the effects of these interactions.
The Least You Need to Know
• Consumption by consumers, investment ...