Autarky Definition and Examples
Autarky is a self-sufficient economic state without international trade, but can limit growth due to higher costs, limited access to foreign goods, and lack of competition.
Macroeconomics
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.
GDP Deflator
The GDP deflator is a measure that quantifies the overall price level in an economy by comparing the nominal GDP to the real GDP, providing an indicator of inflation or deflation.
Stagflation
Stagflation is an economic condition characterized by a combination of stagnant economic growth, high unemployment rates, and high inflation.
Physical Capital
Physical capital refers to tangible assets, including machinery, equipment, buildings, and infrastructure, used in the production of goods and services.
Quantity Theory of Money
Table of Contents What is the Quantity Theory of Money? Quantity Theory of Money Formula Assumptions of the Quantity Theory of Money Implications of the Quantity Theory of Money Criticisms and Limitations of the Quantity Theory of Money FAQs Quantity Theory of Money: Definition, Assumptions & Formula Written by Paul Boyce Posted in Macroeconomics >
Open Market Operations
Open market operations refer to the buying and selling of government securities by the central bank in order to control the money supply, interest rates, and stabilize the economy.
Fisher Equation
The Fisher equation relates nominal interest rates, real interest rates, and expected inflation, providing insight into the interplay between interest rates and inflation in an economy.
What is the Economic System in the United States
Table of Contents Capitalism and the Mixed Economy Market Structures Monetary and Fiscal Policy Income Distribution and Social Welfare Conclusion FAQs What is the Economic System in the United States? Written by Paul Boyce Posted in Macroeconomics Last Updated May 10, 2023 The United States, home to the world’s largest economy, operates under a mixed
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What Role Does Competition Play in International Trade
Competition plays a key role in promoting innovation, efficiency, and lower prices in international trade, benefitting both consumers and firms.
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Circular Flow Model
The circular flow model is a simplified representation of how money, goods, and services flow through the economy between households and firms, illustrating the interdependence of these two groups for their economic well-being.