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How world economy works?

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How world economy works?

Posted by Rohit Kumar 4 years ago

CBSE > Class 10 > Social Science

1 answers

Meghna Thapar 3 years, 10 months ago

The three principles that describe how the economy as a whole works are: (1) a country's standard of living depends on its ability to produce goods and services; (2) prices rise when the government prints too much money; and (3) society faces a short-run tradeoff between inflation and unemployment. The functioning of the global economy can be explained through one word —transactions. International transactions taking place between top economies in the world help in the continuance of the global economy. These transactions mainly comprise trade taking place between different countries.

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