Money Market Graph with Demand, Supply and Equilibrium
Money market graph shows the money market demand and supply forces and equilibrium of the money market. What is money…
Monetary policy : Objectives and tools
Monetary policy is a demand-side economic policy that is accomplished by the central bank (in USA, Federal Reserve Bank) to…
What is Gross Domestic Product – GDP Meaning?
Gross Domestic Product (GDP) Meaning GDP meaning: The monetary value of the final goods and services produced within an economy…
What is the Aggregate Expenditure Model in Economics?
What is the aggregate expenditure model? The aggregate expenditure model shows the total expenditure is incurred by an economy to…
Nominal Vs Real GDP – Complete Lesson
Key difference between nominal vs real GDP is, nominal GDP is calculated based on current prices while real GDP is…
What is the Multiplier Effect in Economics? – Complete Lesson
What is the multiplier effect? When there is a change in the injection into the Circular Flow of Income, the…
GDP deflator – All the Things You Need to Know
GDP deflator measures the impact of inflation on GDP. The GDP deflator formula is the ratio between the nominal GDP…
Output Gap Formula, Examples, Positive Vs Negative Gaps
What is Output Gap (GDP Gap)? The difference between real gross domestic product and potential gross domestic product is called…
Potential GDP Definition, Formula, Determinants, and Vs Real GDP
What is potential GDP? Potential GDP is the level of gross domestic product (GDP) that the economy able to achieve…
Recessionary and Inflationary Gaps in The Income-Expenditure Model
Recessionary and Inflationary Gaps Recessionary and Inflationary Gaps: If real output level < potential GDP, there is a recessionary gap….