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: Understanding & Bridging the Gap (Measurement, Solutions)
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 between
Possible Conflicts Between Macroeconomic Goals
Conflicts between macroeconomic goals occur because governments cannot pursue all goals at once. There is a trade-off between these goals. Choosing one goal requires the government to forego or not achieve other goals. Thus, the government must
Macroeconomics Goals: Balancing Growth, Prices, Jobs and More
Macroeconomic goals act as a blueprint for a nation's economic health, impacting everything from income potential to investment stability. Let's delve into the five main macroeconomic goals that governments and central banks strive to achieve and
Balance of Payments: Understanding a Country’s Economic Footprint
Balance of payments acts as a comprehensive snapshot of a country's economic activity on the world stage. It's essentially a double-entry bookkeeping system that tracks all financial transactions between a country and the rest of the world over a
Unemployment Rate: Explained (Causes, Effects, Solutions)
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: 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