The Wholesale Price Index (WPI) measures the prices of goods and services traded between businesses, also known as the “wholesale” price. The WPI is a basket of goods and services that businesses buy and sell to each other, rather than to consumers. The WPI is used to measure inflation in the economy. The WPI is … Read more
Absolute Advantage: Definition and Benefits How do you do absolute advantage? In order to calculate absolute advantage, you will need to compare the output per unit of input for two different countries. The country with the higher output per unit of input is said to have an absolute advantage in the production of that good … Read more
A double-dip recession is defined as two consecutive quarters of negative economic growth, as measured by a country’s gross domestic product (GDP). A double-dip recession is typically associated with a period of economic turmoil, as businesses and consumers alike cut back on spending in an effort to weather the economic downturn. While a double-dip recession … Read more
What is aggregate supply? How does aggregate supply work? What is aggregate supply example? In macroeconomics, aggregate supply (AS) is the total supply of goods and services that firms in an economy plan on selling during a specific time period. It is the total amount of output that firms will produce and sell at a … Read more
The balance of trade (BOT) is the difference between a country’s imports and exports. A country has a trade surplus if its exports exceed its imports, and a trade deficit if its imports exceed its exports. The balance of trade is an important indicator of a country’s economic health. To calculate the balance of trade, … Read more
Structural unemployment is a form of unemployment that is caused by a mismatch between the skills that workers have and the skills that are required for the jobs that are available. Structural unemployment can also be caused by a decline in the demand for a particular type of job. What are the causes of structural … Read more
. What is the Marginal Propensity to Consume (MPC) in Economics? What is consumption function PDF? The consumption function is a mathematical formula that describes the relationship between consumption spending and disposable income. It is used by economists to predict consumer spending patterns and to assess the impacts of changes in economic conditions on consumer … Read more
The downside definition is a technical term used in macroeconomics that refers to the level of economic activity below which a recession is said to occur. The downside definition is typically used by economists in order to measure the depth and severity of a recession. How can downside risk be reduced? There are a number … Read more
The GFSR is an annual report published by the International Monetary Fund (IMF) that assesses the global financial system and the risks to its stability. The report includes an overview of global financial markets and an assessment of risks to financial stability. It also includes policy recommendations for addressing these risks. What is financial stability … Read more
The employment-to-population ratio is a measure of the proportion of the population that is employed. It is calculated as the number of employed people divided by the total population. The employment-to-population ratio can be used as an indicator of the health of the economy. A high employment-to-population ratio indicates that a large proportion of the … Read more
