What's it: Deregulation refers to reducing or removing regulations to promote economic activities, competition, and free markets. Deregulation trends gained popularity due to new trends in economic thinking, criticizing government regulations'
Macroeconomics
Induced Expenditure: Definition, Components, Examples, Formula
Induced expenditure, on the other hand, is the opposite. It refers to spending that varies with the level of income. The more income people have, the more they tend to spend. This article will focus on induced expenditure, explaining its components,
Kondratieff Cycle: Long Waves of Innovation and Economic Growth
The Kondratieff cycle, also known as the long wave theory, proposes a fascinating concept: the existence of long economic upswings and downswings lasting for decades. This theory, named after Russian economist Nikolai Kondratieff, suggests that these
The Four Pillars of the Economy: Understanding Macroeconomic Sectors
What's it? The Macroeconomic sector is an aggregate group representing economic actors. Economists divide it into four groups: household, business, government, and external sectors. Each represents an actor in the economy. The expenditures of the
Economic Development Explained: Stages, Goals & Impact
What's it? Economic development refers to an economy's progress in terms of quality. It's not just about economic growth. It also talks about a country's multidimensional aspects, such as increasing per capita income, improving education and health,
Structural Policy: Building a Stronger Economy – Goals, Examples, Impacts
What's it: Structural policies are government policies that influence the potential output and influence the private sector's choice to allocate economic resources. Long story short, it is an economic policy to influence long-run aggregate
Real Business Cycle Theory: Understanding Its Assumptions, Causes, Criticism
Real business cycle theory sheds light on the ups and downs of economies, focusing on how real-world changes trigger fluctuations. Unlike other theories that emphasize demand, the real business cycle perspective highlights how shifts in the supply
Employment: Indicators, Importance, Policies to Achieve Full Employment
What's it: Employment refers to the condition of having paid work, as in the Cambridge Dictionary. We also use it to refer to the number of people who have a job (Cambridge Dictionary) or the extent to which a labor force is
Fiat Money Explained: Pros, Cons; How It Works (End of Gold Standard?)
What's it: Fiat money is a currency with no intrinsic value but is a legal tender in an economy. An example of fiat money is paper money. The face value of fiat money is what you see, and it appears on the paper. Meanwhile, its real value is how
Ability-to-Pay Taxation Explained: Fair Share, Fair System – Examples, Pros, Cons
Ability-to-pay taxation is a cornerstone concept in modern tax policy. It argues that the amount of tax an individual or entity should pay should be based on their financial resources. This principle forms the foundation of progressive tax systems,
Human Development Index: Indicators, Ranking, Benefits, Limitations
The Human Development Index (HDI) is a powerful tool that goes beyond traditional economic metrics to measure a country's overall well-being. Developed in 1990, the HDI takes a multidimensional approach, considering not just a nation's economic
Understanding the Government Sector: A Pillar of the Macroeconomic Landscape
The macroeconomic sector encompasses two broad categories: the public sector and the private sector. The government sector, a critical pillar within the public sector, plays a central role in shaping a nation's economic trajectory. This page dives