ECONOMY

New Keynesian Economics New Keynesian economics is a macroeconomic theory that emphasizes the role of government intervention in mitigating economic fluctuations. Unlike traditional Keynesianism, which focuses on aggregate demand, New Keynesianism emphasizes the importance of supply-side policies to stimulate economic growth. Key Concepts: 1. Demand-Based Policies:– Focus on increasing aggregate demand through fiscal and monetary […]

Economics is a social science that studies the production, distribution, and consumption of goods and services. It is a broad field that encompasses a wide range of topics, including: Macroeconomics:* Aggregate economic activity* Economic growth* Inflation* Interest rates* Unemployment Microeconomics:* Individual decision-making* Supply and demand* Labor markets* Market structure* International trade Public Economics:* Government spending […]

Per Capita Income (PCI) Per capita income (PCI) is a measure of a country’s wealth that is calculated by dividing the nation’s total income by its total population. It reflects the average income earned per person within a country. Formula:Per Capita Income (PCI) = National Income/Population Units:– Dollars, euros, pounds, etc. Key Factors Affecting PCI: […]

The concept of the “Fourth World” is a complex and controversial one. It generally refers to a hypothetical social order that exists beyond the boundaries of the three current “worlds”: the First World (the West), the Second World (formerly the Soviet Union), and the Third World (developing nations). Here are some key features of the […]

Disinflation Disinflation is a decrease in inflation. It occurs when the general price level of goods and services is falling. In other words, prices are decreasing. Causes of Disinflation: Demand-pull disinflation: Occurs when consumer demand decreases, leading to a decline in prices. Cost-push disinflation: Occurs when production costs decline, such as raw material prices or […]

Demographic dividend A demographic dividend refers to the positive impact on economic growth caused by a decline in fertility rates and an increase in life expectancy, leading to an increase in the working-age population. Explanation: Declining fertility rates: As societies become more industrialized and modern, fertility rates decline. This reduces the number of births per […]