ECONOMY

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 policies.- Examples include […]

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) 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: Examples: Significance: Additional Notes: […]

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 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: Effects of Disinflation: Examples of Disinflation: Potential Issues: Conclusion: Disinflation is a decrease in inflation. It can have various causes and effects on the economy. While disinflation […]

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: Impact on Economic Growth: The demographic dividend can have a significant positive impact on economic growth by: Challenges: While the demographic dividend […]