Final answer:
Professional sports and the economy interact through the economic impact of sports events on the local area, job creation, and business growth. The multiplier effect is used to analyze the circulation of money within the local economy and determine its impact.
Step-by-step explanation:
Professional sports and the economy interact in several ways. One aspect is the impact of professional sports on the local economy. When a city attracts professional sports teams and builds stadiums, it can create jobs and stimulate business growth.
However, there are differing views on the economic impact of sports. Some argue that money spent on professional sports events is money that could have been spent on other forms of entertainment, causing a reallocation of spending and potentially shrinking the local economy.
The multiplier effect, which analyzes the circulation of money within the local economy, is often used to study the economic impact of professional sports. It determines how much of each dollar earned in professional sports is recirculated in the local area compared to other entertainment options.