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Macroeconomics Simplified

In an economy there are five key players: households, government, firms financial system and central bank.There exists a close interrelationship between these players. The economy also has a relationship with the rest of the world in the form of exports and imports. GDP can be defined as the total amount of all final goods and services produced within the boundaries of the country within a particular period usually a financial year.Inflation is the sustained increase in the general price levels. Deficits are of two types:fiscal and trade. Demographics is the nature of population that exist in a country.

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