Inflation & ITS Control Measures
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…
Business Cycles & Stabilization
Business cycles are the rhythmic fluctuations in the aggregate level of economic activity of a nation. Business cycle comprises of following phases − DepressionRecoveryProsperityInflationRecession Business cycles occur because of reasons…
Modern Theories of Economic Growth
Definition of Economic Growth Economic growth refers to an increase in the goods and services produced by an economy over a particular period of time. It is measured as a…
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…
Nature of Macroeconomics
Macroeconomics is basically known as theory of income. It is concerned with the problems of economic fluctuations, unemployment, inflation or deflation and economic growth. It deals with the aggregates of…
Investment Under Uncertainty
Uncertainty is defined as a situation where there is a possibility of differing outcomes. For example, in an uncertain situation, the managers should evaluate the chance of difference in expected…
Discounted Cash Flow Techniques
Discounted cash flow techniques consider time value of money and are therefore also known as modern techniques. Net Present Value (NPV) The net present value is one of the discounted…
Investment Under Certainty
Capital Budgeting is the process by which the firm decides which long-term investments to make. Capital Budgeting projects, i.e., potential long-term investments, are expected to generate cash flows over several…
Transfer Pricing
Transfer Pricing relates to international transactions performed between related parties and covers all sorts of transactions. The most common being distributorship, R&D, marketing, manufacturing, loans, management fees, and IP licensing.…
