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
Macroeconomics
Behavioral Economics: Importance, Examples of Concepts
What's it: Behavioral economics is a branch of economics on how psychological factors influence and explain economic decision making. It studies the cognitive, emotional, cultural, and social effects on decisions made by economic
Total Factor Productivity: Meaning, Determinants, How to Calculate
What's it: Total factor productivity quantifies the share of economic growth not explained by increases in labor and capital when both are used together in the production process. We also often refer to it as the residual Solow model or
Foreign Exchange Reserves: Composition, Importance, Impacts on Economy
What's it: Foreign exchange reserves are liquid assets denominated in foreign currency held by the central bank or government for future use. This includes reserves in hard currency (such as dollars, euros, and yen), government securities
Capital Account on the Balance of Payments: Concept and Components
What's it: A capital account is a part of the balance of payments in addition to the current account and financial account. It records the net proceeds from capital expenditure and income transactions. It has two main components, namely the
Kondratieff Cycle: Meaning, Details of the Cycle and Criticism
What's it: Kondratieff cycle is a long-run economic cycle. That's according to the name of its discoverer, Nikolai D. Kondratieff, a Russian economist. He believed that such cycles were the result of and periods of technological evolution and
Gross National Product: Meaning, Importance, How to Measure
What's it: Gross national product (GNP) is the total monetary value of the products and services produced by a country's citizen, regardless of where the location of production. The production location may be in their country or outside the country.
Automatic Stabilizer: Meaning, Types, How It Works
Automatic stabilizers refer to government policy programs designed to moderate economic fluctuations without direct government intervention. Two examples are transfer payments and taxes. Such programs help the economy to avoid recession or
What Is Gross Investment
Gross investment is the sum of expenditures for new capital purchases and the replacement of depreciated capital. The company buys new capital goods, such as factories and equipment, to increase its production capacity. Meanwhile, capital replacement
What Is Gross Domestic Private Investment
Gross domestic private investment represents investment spending by the private sector. This is one component of gross domestic product (GDP) in addition to household consumption, government spending, and net exports. Investment growth contributes