GDP per capita is equal to the gross domestic product (GDP) divided by population. It is a measure of the average output or income per person. Two types of GDP per capita are nominal GDP per capita and real GDP per capita. The difference between
Economics
Business sector savings
In macroeconomics, business sector savings are equal to undistributed corporate profit plus capital consumption allowance. Below is the formula: Business sector savings = Undistributed corporate profit + Capital consumption
Aggregate Demand: Formula, Components and Determinants
What's it: Aggregate demand (AD) is the sum of demand for goods and services in the economy at a given price level and a certain period. In the open economy, it comprises demand from four macroeconomic sectors: households, businesses, governments,
Very Short-Run Aggregate Supply: Its Curve and a Brief Explanation
What's it: Very short-run aggregate supply refers to the aggregate supply in which firms change the output to a limited extent without changing prices. It has a perfectly elastic curve, a horizontal line. What is the difference between the
Aggregate Supply: Types, Curves, and Determinants
What it's: Aggregate supply (AS) is an economy's total goods and services. It behaves differently in the very short run, short run, and long run. Each has a different elasticity. Short-run aggregate supply determines actual real
Deflationary Gap: Meaning, Causes, Implication to the Economy
A deflationary gap occurs when the actual real GDP is below its potential output. In this situation, some economic resources are underutilized, which in turn, creating a downward pressure on price level. This term is synonymous with the recessionary
Business Sector: Roles, Ownership, and Types
What's it: The business sector is a private economic actor dealing with producing goods or providing services. It covers all businesses, from small to giant, across industries. Together with the household sector, it forms the private sector. And
Form 10-K
A Form 10-K report is an annual report of all public companies in the United States. The US Securities and Exchange Commission (SEE) requires it each year and must be filed within 90 days after fiscal year-end. The report contains a thorough review
Goods markets
Goods markets are markets in which companies and households interact to buy and sell the output of goods and services. In this market, households act as buyers, while companies act as sellers. This role is the opposite of the factor market, the