Final answer:
Feudalism in Europe had a significant impact on the economy, limiting economic growth and mobility for serfs. The decline of feudalism led to changes in the economy, including the emergence of a merchant class.
Step-by-step explanation:
Feudalism had a significant impact on the economy in Europe during the medieval period. The feudal system was based on a social structure where the lords owned the land, knights provided military service, and serfs worked the land in exchange for protection. This system limited economic growth and mobility as serfs were tied to the land and had little income to spare. Additionally, the decline of feudalism after events like the Great Famine, Black Death, and Hundred Years' War led to the emergence of a merchant class and the weakening of feudal hierarchies, contributing to economic changes in Europe.