The branch of economics that looks at the economy as a whole. It looks at factors which affect the wider economy rather than individuals. Examples include inflation, trade, unemployment, and economic growth.

Types of Fiscal Policy

3 Types of Fiscal Policy

There are three types of fiscal policy; neutral, expansionary, and contractionary.
A neutral policy refers to a balanced budget. In other words, government brings in enough taxation to pay for its expenditures.
Expansionary fiscal policy is where government spends more than it takes in through taxes.
Contractionary fiscal policy is where government collects more in taxes than it spends.

calculator and pen showing a budget deficit

Budget Deficit Definition

A budget deficit is where we spend more than we receive. If our monthly salary is $1,000, but we spend $1,100; our budget deficit is $100. This is because we are spending $100 more than we receive from our salary. Budgets deficits apply to any person or entity.

comparative advantage example table

Comparative Advantage Definition

Table of Contents What is Comparative Advantage Comparative Advantage Examples Absolute Advantage vs Comparative Advantage How to Calculate Comparative Advantage Comparative Advantage FAQs Comparative Advantage Definition Written by Paul Boyce Posted in Macroeconomics > International Trade Last Updated October 30, 2022 What is Comparative Advantage Comparative advantage is where a nation is able to produce

Central Bank Definition

Central Bank Definition

A central bank controls the supply of money as well as how it reaches the consumer. It can not only print and inject money into the economy, but also regulate commercial banks distribution of it.

Dependency Ratio Definition

Dependency Ratio Definition

The dependency ratio is the percentage of children and those over 64 years old, compared to the people who are of working age. In other words, young and old people who are not in work, are dependent on the taxpayer to pay for public services. That includes public pensions, schooling, or other forms of social security.