Talking about the economy, one thing will be coming in everyone's mind, money. Money has a lot of contribution in our daily life as we cannot live our life without money, to eat, to live, to do anything, whatever it takes is money.

If you understand the economy in simple language, then this is a study in which the money which is available in any country is used by the government so that that money helps in giving good facilities to the people of the country.

Now it comes that wheredoes the government have so much money, that it uses for the people of the country? The tax that we pay, the big companies in the country also have to pay some amount to the government by way of tax, which we also call GST (Goods and Service Tax). It is very important to use money in the country so properly. It is believed that the country whose economy is good, the growth of that country is very good.

These things matter a lot in the economy

Production is a term that describes the output of the work done in any organization.

Consumption means anything that people use for some purpose.

In the market where we buy or sell shares, it is called stock exchange, the entire impact of the market is on our economy, we all know this.

Distribution is a term that refers to the import and export of goods in a country.

If there is going to be a growth in the economy, then some investors from outside also give their money to the country through investment.

Why is it so important to know the economy?

Every citizen of the country is a part of the economy, for which it is equally important for us to know the economic process i.e. how it works.

To understand the economy means to understand the country, how does the economy functions

How they use our money for the betterment of our nation and for peoples living in.

Budget allocation is also done by studying the economy. It is decided in the budget that how much money will be given in which sector, announcement of big package is done on the basis of economy.

The economy can be classified in many ways, but there are two such components in it that classify it very well, which was Ragner Frisch, the first to speak about it in about 1933. Those two components were macro economy and micro economy. From which today the entire economy is defined, these are the two words by which we classify the economy.