What is the Economy?

You might hear the word “economy” on the news. Sometimes, you hear the economy is good. Sometimes, you hear it is bad. What does that mean?

When the economy is good, most people are not too worried about money. They have jobs. They have enough money to buy what they want.

When the economy is bad, many people don’t have jobs. People can buy only what they need.

This girl is making a plan. She is saving her money. If she spends the money, she is part of the economy!

What Do You Think? A friend asks you, “What is the economy?” What do you say?

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