Economy is a word we hear often in news and exams, but what does it really mean? In simple words, the economy is how money, jobs, goods, and services work in a country. To understand it better, let’s look at some important terms.
1. Boom Economy (Good Economy)
This is the time when everything looks bright. People have jobs, businesses earn profits, and there is more money in the market. Example: When companies are hiring a lot, it shows a boom.
2. Recession (Dead Economy)
This is the opposite of a boom. Here, jobs are less, people spend less, and businesses may close down. Example: During COVID-19 lockdowns, many countries faced recession.
3. Inflation
Have you noticed how the price of petrol or vegetables increases over time? That is inflation. It means goods and services become costlier, and the value of money goes down.
4. GDP (Gross Domestic Product)
GDP is like a report card of a country. It tells us how much value of goods and services the country produced in one year. A higher GDP means the country’s economy is doing well.
5. Unemployment Rate
This shows how many people are searching for jobs but not finding them. If unemployment is high, it means the economy is weak.
✅ Quick Tip for Students:
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Boom economy → growth and jobs.
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Recession → slowdown and job losses.
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Inflation → rising prices.
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GDP → country’s report card.
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Unemployment rate → job availability.
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