Macroeconomics

What is a trade deficit

What is a Trade Deficit

A trade deficit occurs when a nation imports more goods than it exports. In other words, a nation buys more from other countries, than it sells to other countries.

different types of money

3 Types of Money

Money is a medium of exchange. It allows two people to trade without needing what the other wants. This can come in all types and forms. So long as people trust and accept a certain form of money; it can be used as a medium of exchange. For example, gold was historically used as a form of monies. Farmers would go to market and sell their cows in exchange for a certain amount of gold. This gold could then be exchanged by the farmer for a loaf of bread from the baker.

How is Inflation Measured

How is Inflation Measured

So now we have looked at what money essentially represents, let us look at how inflation is measured. Inflation is usually measured through the CPI, which is based upon a basket of goods.

Free Market Definition

Free Market Definition

A free market is where the people in an economy are free to engage in economic activities and transactions without government interference.

What is Fiscal Policy

Fiscal Policy Definition

Fiscal policy refers to governments spending and taxation. So how much income it has coming in through taxes, and how much it has going out through spending such as welfare, defence, and education.

SWOT Analysis Definition

SWOT Analysis Definition

SWOT Analysis is a strategic management tool to help individuals and businesses identify their Strengths, Weaknesses, Opportunities, and Threats. These help identify the viability of a new project, business venture, or the existing competitive environment.

PESTLE Analysis Definition

PESTLE Analysis Definition and Template

PESTLE analysis is a strategic management tool that businesses use to identify macro-economic factors that it needs to consider. The word ‘PESTLE’ stands for the six factors – Political, Economic, Social, Technological, Legal, and Environmental. Together, they form the basis for identifying key issues that may impact the strategic direction of the company.

Keynesian Economics Definition

Keynesian Economics Definition

Keynesian economics is a school of thought that originated from economist John Maynard Keynes in the late 1930s. Its basic premise is that government intervention should be used to stabilize the economy.