A clearer way to put it is: Spend alot of money in tha region you want to have economy raised, reduce rent to about -40% and shops to -20% (correct if I'm wrong Sr players).
Lowering prices in shops can sometimes hurt the economy because the shopkeepers can't make enough money.
There are more ways to help the economy than just spending, but spending is your number one priority. Working jobs and performing positive expressions to the masses can also be beneficial. For every crime you commit, whether or not you get caught, the economy takes a hit. Also remember that selling does not seem to help, or hinder really, the economy.
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