That is indeed how the economy is structured, yes. Money gets printed and wages go up, ideally resulting in a unit of work continuing to hold the same value while the hoarding of money is discouraged. This in turn stimulates spending which enables producers to keep producing.

The other option is that everyone just tightens their belts and stops spending, which means producers downsize their capacity and let staff go and the economy contracts while a whole bunch of people lose their ability to keep themselves housed and fed.