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I need a houseBut I want a big yard
This is where I will open my own restaurant
I have the freedom to do this because I live in a market economy
Its because more people are buying them. As the demand for the magazines go up, so does the price.
Why are the magazines getting more expensive?
The house is a necessity to the man, but the yard is a preference.Wants and Needs
My country is going through an economic depression, our GDP is at its lowest and I am out of work
There is no government interference in a market economy, this man wouldn't be able to freely manage his restaurant if he lived in a command economy.Different economy systems
The country's GDP is rising again and I am working again
When more people want a good or service, the provider will jack up the price to match the demand.Supply and Demand
My country's GDP is at its highest, and I am back on my feet!
Trough of economic cycleEconomy stuck at negative growth rate, demand for goods and services reduces
Expansion of economic cycleEconomy is growing, consumer spending, income, demand, supply, employment, output, and business returns all go up
Peak of economic cycleThe economy is at its peak, income, consumer spending, and employment stay at a high

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