What's it: Autarky is a system or philosophy in which an economy seeks to be self-sufficient. If a country adopts this system, it will
Economics
Adverse Economic Shocks: Examples, Impacts, Solutions
What's it: An adverse economic shock is a sudden, unexpected, and dramatic change in aggregate supply and demand, hurting the economy. For
Wage Rigidity: Reasons and Implications
What's it: Wage rigidity refers to a situation where wages are insensitive to changes in supply-demand in the labor market. For instance,
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Natural Rate of Unemployment: The Explanation
What's it: The natural rate of unemployment (NARU) is the unemployment rate when the economy is operating at full employment. Sometimes, it
Consumption Expenditure: Type, Determinants, Impact
What's it: Consumption expenditure refers to the money individuals spend on goods and services. In economics, we can also say it is the residual
Economic Shock: Types, Causes, Impacts
What's it: An economic shock is a sudden and unexpected significant change in an economy's output due to changes in external factors. Shocks
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Long-Run Macroeconomic Equilibrium and Its Explanation
What's it: Long-run macroeconomic equilibrium occurs when the aggregate demand curve intersects the short-run aggregate supply curve at the point
How Consumption Expenditure Affects the Economy
In macroeconomics, consumption expenditure affects the economy through aggregate demand. Economists include it as an item in aggregate demand in
How does Unemployment Impact Individuals, Society, Businesses, and the Economy?
Unemployment has wide implications. It doesn't just have consequences on the individual. But, it also impacts society, business, and the economy. For
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Short-run Macroeconomic Equilibrium and Its Implications for the Economy?
What's it: A short-run macroeconomic equilibrium occurs when the aggregate demand curve and the short-run aggregate supply curve intersect. It
Competitive Market: Characteristics and Examples
What it's: A competitive market refers to a market characterized by intense competition in which no player has a dominant power. It is identified
Which Factors Affect Consumption Expenditure?
Several factors affect consumption expenditure. Disposable income comes first. Without it, there is no income to buy the product. Other factors
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Supply Shock: Examples, Causes, Effects
What's it: A supply shock is a sudden and unexpected event causing a dramatic change in output. It can be positive or negative. It is positive if
Long-Run Aggregate Supply: Its Curve And Influencing Factors
What's it: Long-run aggregate supply (LRAS) refers to the total output produced in the economy when all inputs are variable. Wages and other
Consumer Spending Patterns: Influencing Factors
What's it: Consumer spending patterns are changes over time in the total money individuals spend on goods and services for personal use. It also
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How Exchange Rates Affect Aggregate Demand and the Economy
Exchange rates affect aggregate demand through their effects on exports and imports. Specifically, it affects the relative prices of imported or