The Phillips curve is an economic theory that describes the relationship between inflation and unemployment. It was first proposed by economist A. W. Phillips in 1958. The theory suggests that there is a trade-off between inflation and unemployment, so that as one goes up, the other goes down. The Phillips curve is used by central … Read more
Economic recovery refers to the process of restoring economic health after a period of decline. It is often used to describe periods following recessions or depressions, when economies are struggling to rebound and return to growth. Recovery can be a slow and difficult process, as businesses and consumers alike may be hesitant to spend and … Read more
In general equilibrium theory, agents are assumed to be price takers. This means that they take prices as given and do not try to influence them. The prices of the goods and services in the economy are determined by the interaction of supply and demand in the market. The market clearing condition is that the … Read more
A procyclic definition is a technical term used in macroeconomics to describe a situation where an economic indicator, such as gross domestic product (GDP), moves in the same direction as the overall business cycle. In other words, when the economy is expanding, GDP will also increase; when the economy is contracting, GDP will decrease. The … Read more
A barometer is an instrument that is used to measure atmospheric pressure. It can be used to measure the pressure of the air in a particular area, or to measure the pressure of the air in the atmosphere as a whole. The term “barometer” is often used to refer to the economic barometer, which is … Read more
The wage-price spiral is a self-reinforcing process of wage increases and price increases that leads to inflation. This spiral occurs when workers demand higher wages in order to keep up with rising prices. In turn, firms raise prices in order to cover the higher cost of labor, leading to even higher wages and prices. As … Read more
Economic growth is a broad measure of an economy’s overall health and is typically represented by an increase in a country’s Gross Domestic Product (GDP) or Gross National Income (GNI). GDP is the most commonly used metric for measuring economic growth and is often used to compare the economic performance of different countries. GNI is … Read more
The Import and Export Price Indexes (MXP) measure the changes in prices of a basket of imported and exported goods and services. The indexes are calculated using data from the National Accounts and are released monthly. The import and export price indexes are important indicators of inflation and can be used to measure the competitiveness … Read more
An industry is in decline when it is losing market share to competing industries. This can be due to a variety of factors, including changes in consumer preferences, technological advancements, and new entrants into the market. A declining industry is typically characterized by a shrinking customer base, declining profits, and layoffs. What is decline strategy? … Read more
Stagflation is a term used to describe a situation in which the inflation rate is high and the economic growth rate is low. This combination of factors can lead to increased unemployment and a decrease in the standard of living. What is new Keynesian Phillips curve? The new Keynesian Phillips curve (NKPC) is a macroeconomic … Read more
