A credit cycle is the natural ups and downs of the economy as measured by the expansion and contraction of credit. The business cycle is popularly thought to include four phases: expansion, peak, contraction, and trough. The expansion phase is characterized by increasing economic activity and credit creation. This results in higher asset prices and … Read more
What is cost push inflation and what causes it? What is NAIRU in economics? The Non-Accelerating Inflation Rate of Unemployment (NAIRU) is the level of unemployment at which inflation is neither accelerating nor decelerating. In other words, it is the “natural” rate of unemployment, which is determined by structural factors in the economy and is … Read more
The Solow residual is a measure of economic growth that captures the impact of factors other than capital and labor. It is named after economist Robert Solow, who first proposed the concept in a 1957 paper. The Solow residual is typically calculated as the difference between actual economic growth and the growth that would be … Read more
In macroeconomics, the boom and bust cycle is a repeating pattern of economic expansion followed by contraction. The boom phase is characterized by strong economic growth, while the bust phase is characterized by a period of decline. The boom and bust cycle is often caused by a combination of factors, including inflation, interest rates, and … Read more
In economics, a shortage is a situation in which the quantity demanded of a good or service exceeds the quantity supplied. In other words, it is a condition in which there is not enough of a good or service to meet the demand of consumers. A shortage can be caused by a number of factors, … Read more
Geographical labor mobility is the ability of workers to move from one place to another in order to find work. This type of labor mobility is often seen as a key factor in ensuring that workers are able to find employment in areas where there is a demand for their skills. There are a number … Read more
Macroeconomics is the study of the behavior of large financial systems. In general, it looks at how financial systems affect economic growth. In particular, macroeconomics focuses on the following three aspects of the economy: 1. The level of economic activity (e.g. GDP) 2. The rate of economic growth 3. The level of employment Jobs growth … Read more
The real effective exchange rate (REER) is an index that measures the relative value of a currency against a basket of other currencies. The basket of currencies is typically made up of the currencies of the country’s major trading partners. The REER takes into account the effects of inflation and is used to measure a … Read more
What is the dependency ratio, and how do you calculate it? How do you calculate work population ratio? The work population ratio is calculated by dividing the number of people in the labor force by the total population. What is the current dependency ratio? The dependency ratio is a measure of the number of people … Read more
Causes, Effects, Examples, and How to Prepare. What is Hyperinflation? Hyperinflation is a period of time when prices for goods and services increase rapidly. This usually happens when there is more money in circulation than there are goods and services to buy. As people try to spend their money before it loses its value, prices … Read more
