1 Economy2 The way goods3 services and wealth are distributed through society to those who need them.

Apuntes

 Economy The way goods, services and wealth are distributed through society to those who need them.  Principal job of any government Oversee the distribution of goods, services and wealth to ensure it functions smoothly.  Economy grows When the number of goods and services, and the wealth created, expands People get richer and living standards go up.  Wealthy economy Not necessarily mean that the wealth is distributed equally, and even in the richest nations there can be extreme levels of poverty.  Vocabulary • Gross domestic product (GDP): The total value of goods and services in an economy. While GDP is a useful economic indicator, it should not be viewed in isolation. A comprehensive assessment of economic success should include a variety of factors that reflect both the quality of life and sustainability of growth. • Inflation: The rate at which prices rise over time. Inflation is the general increase in prices of goods and services in an economy. Some of the main causes of inflation are Excess Demand, Production Costs, Monetary Policy, Inflation Expectations, External Factors, Stability of Inflation vs. Job Creation. • Recession: Negative economic growth in ter...