What's it? Government expenditures refer to money the government spends on goods and services or other items. Examples are expenditures on operational activities and investments in public services such as defense, education, social protection, and
Macroeconomics
Understanding Public Savings: Why They Matter (Formula and Impacts)
Public savings, the money a government has left after paying all its expenses, play a vital role in a nation's economic health and growth. Imagine a country's economy as a giant household budget. Just like families set aside money for future goals,
Household Savings Explained: Formula, Importance, Key Determinants
Household savings represent the money households set aside after paying taxes and covering essential expenses. These saved funds play a critical role in national savings and fuel long-term economic prosperity. This page dives deep into understanding
Explaining National Savings: Formula, Impact, and Importance, and Key Concepts
National savings, the total amount saved by households and the government, are the foundation for a country's economic growth potential. Understanding national savings and how it's calculated is crucial for grasping how a nation fuels investment,
Absolute Poverty: Understanding Its Depth and Impact (Types, Causes)
Absolute poverty is a condition in which a person's income is lower than a decent standard of living, measured by a poverty line. They are considered unable to afford the necessary goods and services (such as shelter, food, and clothing).For
Cost-Push Inflation: Rising Prices and Stalled Growth – Causes, Effects, Solution
Cost-push inflation refers to inflation caused by rising production costs. It can happen because the input costs, such as wages, raw materials, energy, and financial costs, become more expensive.Rising costs force producers to raise the selling
Net Exports: How Trade Impacts The Aggregate Demand and GDP
Net exports measure a country's trade balance by calculating the difference between the value of goods and services it exports and the value it imports. This metric directly impacts a nation's aggregate demand, which is the total spending within its
Hidden Unemployment: Types, Causes, Effects on the Economy
What's it: Hidden unemployment refers to people who are unemployed, but not reflected in official unemployment rates. It includes those who stopped looking for work due to discouragement and those who worked but were underused. Sometimes, the term
Discouraged Workers: Why the Unemployment Rate Might Lie
Discouraged workers are people of working age who stop looking for work. They usually stop looking because they are discouraged after not finding a job. Because they are not actively looking for work, these people are excluded from the labor force
Keynesian Economics: 2 Key Drivers of Economic Growth (Explained)
Key drivers of economic growth have long been a subject of debate among economists. In the early 20th century, the prevailing view held that the free market left to its own devices, would naturally achieve full employment and economic prosperity.
Unemployment: Understanding Its Impact, Types, Causes and Solutions
Unemployment disrupts the flow of the economy and significantly impacts individuals and businesses alike. It refers to the state of individuals who are actively seeking work but are unable to find employment. This phenomenon not only affects a
Economic Growth: Engine for Prosperity – Formula, Calculator, Factors, Impacts
Economic growth refers to an increase in an economy's output over time. It can be short-term or long-term. In the short run, growth represents an increase in real output, usually seen from changes in real GDP. Meanwhile, in the long run, growth