When financial intermediaries deleverage, firms cannot fund investment opportunities resulting in a contraction of economic activity.
When resources such as capital goods, labor, manufacturing techniques, or intermediary products are combined to generate specified goods or services, economic activity occurs. Thus, an economic activity is defined by a resource input, a production process, and a product output (goods or services).
Economic activities include stock trading, the sale of fresh food or automobiles, and the provision of a service such as healthcare or education. Business, profession, and employment are the three basic categories of economic activity.
Economic activities are those that a man engages in in order to obtain his life's income, money, and resources. These activities cover all aspects of life, goods, and services, as well as investment, output, distribution, and consumption.
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