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The DEFINITION Of "Economy"
Social science, which studies how individuals, Governments, firms and people make choices about the allocation of scarce resources to satisfy their unlimited desires. The economy as a whole can be divided into: macroeconomics, which focuses on the behavior of the economy as a whole; and micro-economics, which focuses on individual consumers.
Economics is often referred to as the "dismal science".
Financial Economics EXPLAINS
Two of the major approaches in economics named classical and Keynesian approaches. Classical economists believe that the markets are functioning very well, to respond quickly to any changes in equilibrium and that "non-intervention" policy of the State works best.
On the other hand, the kejnsiancy believe that the markets react very slowly to changes in equilibrium (special price changes) and that active government intervention is sometimes the best way to get the economy into balance.
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