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ECONOMICUS - The Economics Club What is Economy An economy is a large set of interrelated production,
consumption, and exchange activities that determine how scarce resources are allocated. The production, consumption, and distribution of goods and services fulfill the needs of those living and
operating within the economy, also referred to as an economic system. It is divided into two parts, namely Microeconomics and macroeconomics. Micro economy deals with how the individual responds to Incentives and makes decisions. Microeconomics shows how and why different goods have different values, how individuals and businesses conduct and benefit from efficient
production and exchange, and how individuals best coordinate and cooperate. Microeconomics provides a more complete and detailed understanding than macroeconomics. Macroeconomics is a branch of economics that studies how an overall economy, the market, or other systems that operate on a large scale behaves. Macroeconomics studies
phenomena such as inflation, price levels, economic growth rate,
national income, gross domestic product (GDP, and changes in unemployment.
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