What's it: The inflation rate is the percentage change in the economy's prices of goods and services over a certain period. While inflation tells us about a situation where the prices of goods and services increase or decrease, the inflation
Macroeconomic Objective
Income Distribution: How to Measure and Overcome Inequality
What's it: Income distribution is about how the income or wealth of the economy is shared among its citizens. It is fair when income is evenly distributed to all people who really need it and are on target. Thus, there is no sharp disparity
Possible Conflicts Between Macroeconomic Objectives
Conflicts between macroeconomic objectives occur because governments cannot pursue all goals at once. There is a trade-off between these objectives. Choosing one objective requires the government to forego or not achieve other objectives. Thus, the
What are the 5 macroeconomic objectives
When you study macroeconomics, you will study how the economy as a whole operates. It differs from microeconomics, where the focus is on individual economic actors, consumers, and producers, including their economic decisions. Governments are
Balance of Payment: Meaning, Formula, Component, Importance
What's it: A balance of payment is a double-entry bookkeeping system that summarizes a country's economic transactions with the rest of the world over a specific period. The two components of the balance of payments are the current account and the
Unemployment Rate: Formula, Types, Causes, and Effects
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
Economic Growth: Factors, Importance, Impacts, How to Measure It
Economic growth refers to an increase in output in an economy 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