What's is: The unemployment rate is the percentage of the labor force that is currently unemployed. Economists define the labor force as the share of the working-age population currently employed plus unemployed workers who are actively looking
Macroeconomics
Household Consumption: The Engine of Aggregate Demand (Determinants and Impacts)
What's is: Household consumption refers to the final household expenditure on goods and services. Items can be classified as durable goods, nondurable goods, and services.Household consumption is a key indicator for analyzing economic
Dutch Disease: Boom or Bust? Avoiding the Trap + Examples, Causes, Solutions
What's is: Dutch Disease is a term that describes an economic phenomenon when the exploitation of natural resources triggers weakness in other sectors, especially manufacturing. An increase in income from the exploitation of natural resources
Neoclassical Economics: Key Ideas, Assumptions, Models, Limitations
Neoclassical economics is a powerful theory that shapes our understanding of how markets function. At its core lies the dynamic interplay between supply and demand. This theory explains how these forces determine the prices of goods and services, how
Deflation Explained: Dangers Beyond Falling Prices – Causes, Impacts, Solutions
What's it? Deflation is the state of the economy when the aggregate price level falls. It is the opposite of inflation, which we also call negative inflation.Deflation is different from disinflation. Disinflation refers to a slower rate of
Economic Collapse: Warning Signs and Triggers
Economic collapse – a sudden and dramatic downturn in a nation's economy – can be a frightening prospect. While economic downturns are a normal part of the business cycle, an economic collapse goes far beyond a typical recession. It's a severe and
Beyond GDP: Gross National Income (GNI) and its Role in a Nation’s Economic Health
Gross National Income (GNI) paints a more comprehensive picture of a nation's economic health compared to Gross Domestic Product (GDP). While GDP focuses on economic activity within a country's borders, GNI encompasses the total income earned by a
National Income: Definition, Formula, Importance, and What it Really Means for Us
National income is a crucial metric that reveals the total income earned by all the factors of production within a country's borders during a specific period. These factors include labor, land, capital, and entrepreneurship. Understanding national
Capital Consumption Allowance in Calculating National Income: Definition, Why It Matters
Understanding a nation's economic health requires considering more than just the total output of goods and services. Capital consumption allowance (CCA) plays a crucial role in national economic analysis. It reflects the depreciation of essential
Economic Depression: Causes, Effects, and Solutions
Economic depression, a severe and prolonged downturn in economic activity, stands as one of the most disruptive forces impacting nations and individuals alike. Far exceeding a typical recession, depressions trigger widespread unemployment, plunging
Economic Recession: Understanding Downturns [Causes, Effects, Solutions]
Economic recessions disrupt periods of economic growth, marking a downturn in overall activity. They're a normal part of the business cycle, but understanding their causes and impact empowers various stakeholders to navigate these challenging times.
Economic Recovery: Understanding the Path Out of Recession [Types + Signs]
Economic recovery is the period following a recession when an economy begins to heal and grow again. This upswing brings welcome relief from job losses, declining wages, and a slump in business activity. This guide will equip you with the knowledge