Macroeconomics: Government – Expenditures
Externalities In a market economy there are important differences between public and private goods. Private goods are considered "rival and excludable" - one person consuming a good means that another…
Macroeconomics: Economic Performance and Growth
Income is one of the most significant factors in measuring economic performance, and gross domestic product (GDP) is the most commonly used measure of a country's economic activity. In short,…
Macroeconomics: Unemployment
By Stephen Simpson Labor is a driving force in every economy – wages paid for labor fuel consumer spending, and the output of labor is essential for companies. Likewise, unemployed…
Macroeconomics: The Business Cycle
The business cycle is the pattern of expansion, contraction and recovery in the economy. Generally speaking, the business cycle is measured and tracked in terms of GDP and unemployment –…
Inflation
In economics, inflation means rise in the general level of prices of goods and services over a period of time in an economy. Inflation may affect the economy either in…
Theories of Business Cycles
Schumpeter’s Theory of Innovation According to Schumpeter, an innovation is defined as the development of a new product or introduction of a new product or a process of production, development…
Theories of Economic Growth
The Classical Approach Adam Smith laid emphasis on increasing returns as a source of economic growth. He focused on foreign trade to widen the market and raise productivity of trading…
Factors Determining the National Income
According to Keynes there are two major factors that determine the national income of an economy − Aggregate Supply Aggregate supply comprises of consumer goods as well as producer goods.…
National Income & Measurement
Definition of National Income The total net value of all goods and services produced within a nation over a specified period of time, representing the sum of wages, profits, rents,…
Circular Flow Model of Economy
Circular flow model is the basic economic model and it describes the flow of money and products throughout the economy in a very simplified manner. This model divides the market…
