Part 3/12:
At its core, the economy comprises countless transactions, where buyers and sellers exchange money, credit, goods, services, and assets. When a purchase occurs, a request for payment is made—either in cash or credit. Credit functions as a form of money, facilitating more flexible and larger-scale transactions.
The total payments in the economy—comprising actual monetary exchanges and credit—drive economic activity. Dividing total payments by sales volume reveals unit prices, providing insight into the market's health.