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.
We can define Commodity money as a physical good that consumers universally use to trade for other goods. In other words, it is like the money we use today, but has an actual value.
Commodity Money: What it is, Why it has value & Examples Read More »
Globalization, also known as globalisation, is the process by which nations becoming increasingly connected between each other.
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Aggregate demand refers to all the goods produced and brought within the economy. Economists calculate this using values at a specific point in time. In other words, the monetary value of the exchange is registered over the course of a month, quarter, or year.
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A barrier to entry is simply an obstacle that new businesses face when entering the market. This can come in the form of high start-up costs, or strong branded competitors.
The discount rate is the interest rate by which the central bank charges commercial banks to borrow money or cover short-term liabilities. In other words, the central bank lends money to the likes of Goldman Sachs, and in turn, they pay interest of that loan. The interest paid is known as the discount rate.
Deregulation is where governments reduce the level of interference that they have in the marketplace. This involves looking at previous legislation and removing it from the law. In other words, what was previously legal requirements are no longer.
Scarcity refers to the limit upon resources that we have which force economical decision making.
Scarcity: What it is in Economics, Examples & Causes Read More »
Nominal GDP is the total economic output of a nation using current prices. In other words, it is the measurement of all the goods and services a country produces, in prices, at the time they are made.
Inflation is created through excessive money creation. That is to say, money supply is in excess of economic output. Let’s say GDP grows at 2 percent. If the money supply increases by 3 percent, we could expect inflation.
Gross Domestic Product (GDP) refers to a nations economic output, including the goods it produces and services it sells.
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