Then the wealth, interest-rate, and the foreign purchases effects will move economy to point D.
An economy is a sophisticated system of linked exchange, consumption, and production activities that ultimately decides how resources are distributed among all the players. The creation, use, and distribution of commodities and services work together to meet the needs of persons residing in and using the economy. A country's economy might be compared to a region's, a single industry, a family, or even a whole country. An entity, whether it be a country or a small town, has an economy if all of its activities including the creation, consumption, and exchange of products and services are included. There aren't many countries in the modern world that have a strict command or market structure. However, the majority favors one or the other of these theories.
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