Stock and Flow variables Both stock and flows are variables. Generally, most of the economic variables that are studied are categorized either as stock or flow variables. Both are quantities that may increase or decrease over time. However, there is a difference between them. Stock variables are those which are measured at a point of […]
National Income Meaning, Definitions and Measurement Meaning of National Income National income refers to the total value of goods and services produced within a country’s borders in a specific time period, typically a year. It is a key indicator of a country’s economic performance and is used to measure the overall health and growth […]
Scope of Macroeconomics Macroeconomics is a branch of economics that deals with the behavior, structure, and performance of an economy as a whole. The scope of macroeconomics is broad and encompasses several key areas of study and analysis related to the economy as a whole. Here are the main components of macroeconomic analysis: 1. Aggregate […]
Concept of Macroeconomics – Meaning, Definitions and Nature Meaning of Macroeconomics The field of economics has been divided into two distinct area of study: microeconomics and macroeconomics. Microeconomics is that branch of economics which analyses the market behaviour and decision-making process of the individual consumers and firms and also the interactions between individual buyers and […]
Indifference Curve Meaning, Nature, Assumptions, Properties and Limitations Meaning and Nature of Indifference Curve The realms of consumer behavior were expanded to new horizons with the introduction of indifference curve analysis by J.R. Hicks and R.G.D. Allen. The crux of this analysis is that utility is ordinally measurable. From the above discussion on ordinal approach, […]
Monetary Policy Meaning, Objectives, Instruments, Transmission mechanism and limitations in developed and developing economies. Meaning Monetary policy includes the actions of a central bank, currency board or any other regulatory committee that determines the size and rate of growth of the money supply, which in turn affects interest rates. It implies the regulation of […]
Demand Pull and Cost Push Inflation 1. Demand Pull Inflation The demand-pull inflation occurs when the aggregate demand increases at a much higher rate than the aggregate supply. In other words, demand-pull inflation occurs when, given the aggregate supply, aggregate demand increases substantially. Increase in aggregate demand may be caused by i. monetary factors, i.e. […]
Inflation Meaning, Definitions, Characteristics, Causes and types Meaning Inflation is a global phenomenon in present-day times. There is hardly any country in the capitalist world today which is not afflicted by the specter of inflation. Inflation is a sustained rise in the average level of prices. Notice, the word sustained. Inflation does not mean a […]
Business Cycle/Trade Cycle Meaning, Definitions, Features, Phases and Theories Business cycle is the periodic up and down movements in economic activities. It is also know as economic cycle or trade cycle It has been seen that economic activities measured in terms of production, employment and income move in a cyclical manner over a period of […]
General Conditions for Site Selection/Plant Location Selection An ideal location is one where the cost of the product is kept to a minimum, with a large market share, the least risk, and the maximum social gain. Every entrepreneur is faced with the problem of deciding the best site for locating of his plant or factory. […]
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