Country risk premium (CRP) is the additional return that investors demand for investing in a particular country over and above the return they would expect from a risk-free investment in that country. The size of the country risk premium will depend on a number of factors, including the country’s political and economic stability, the level … Read more
Cash wages are the amount of money that an employee receives in their paycheck for the hours they have worked. This does not include any benefits or bonuses that the employee may be entitled to. What are the different types of wages? There are four different types of wages: 1. Base wages These are the … Read more
In macroeconomics, above full employment equilibrium is a situation in which there is more demand for goods and services than there is available supply in the economy. This results in inflationary pressures as businesses attempt to increase prices in order to meet the increased demand. Above full employment equilibrium is also sometimes referred to as … Read more
A contagion is defined as a rapid spread of an infectious agent, such as a virus, through a population. The term can also refer to the spread of an emotion or behavior from one person to another. What is another word for contagion? The other word for contagion is “infection.” What do you mean by … Read more
A credit crunch is a sudden reduction in the availability of loans or credit. A credit crunch typically occurs when lenders become more risk-averse and are unwilling to lend money to borrowers who they perceive as being risky. This can lead to a decrease in economic activity as businesses are unable to obtain the financing … Read more
The term “underemployment equilibrium” refers to a situation in which there are not enough jobs available for all the workers who want to work. This can happen for a variety of reasons, but one of the most common is that there are not enough businesses willing to hire workers. This can be due to a … Read more
A common-pool resource (CPR) is a type of good whose consumption by one individual or firm reduces the availability of the good for consumption by others. CPRs are rivalrous, meaning that one individual’s consumption of the good reduces the availability of the good for consumption by others, and they are non-excludable, meaning that it is … Read more
Structural change is defined as a shift in the composition of an economy away from traditional industries and towards newer, more innovative sectors. This transformation can be brought about by a variety of factors, including technological advancement, changes in consumer preferences, and shifts in global economic dynamics. In developed economies, structural change is often associated … Read more
In macroeconomics, wage push inflation is inflation caused by an increase in wages. When wages increase, businesses must either raise prices in order to cover the higher cost of labor, or they will see their profits decline. If businesses raise prices in order to cover the higher cost of labor, this will lead to inflation. … Read more
The Paradox of Thrift is an economic theory that suggests that when people save more money, it can actually lead to economic decline. The reason for this is that when people save money, they are not spending it, which means that businesses will have less revenue and will therefore cut back on production and investment. … Read more
