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Economic concepts

Understand economics with 12 key concepts explained in plain language. Study GDP, inflation, interest rates, supply and demand, recession, fiscal policy, tariffs, and more.

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Budget deficit When government spending exceeds revenue
Fiscal policy Government use of spending and taxes to influence the economy
Free market Economy where prices are determined by supply and demand
GDP Gross Domestic Product: total value of goods and services produced in a country
Inflation General rise in prices over time
Interest rate The cost of borrowing money
Monetary policy Central bank actions to control money supply and interest rates
Recession Period of negative economic growth for two or more consecutive quarters
Subsidy Government financial support given to a business or industry
Supply and demand Price is driven by product availability and buyer desire
Tariff Tax imposed on imported goods
Trade deficit When a country imports more than it exports

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