MaE

Macro Economics

World Economies
Economy of Japan: Japan is a country that is growing through deflation but not through inflation. Post second world war, its stock market has grown rapidly till late 1980s and all of a sudden it crashed in 1991-92…

Economy of the US linked to external world: US is running highest CA deficits, world’s richest country is also world’s highest borrower (largest debtor). Today it holds debt of 16 trillion dollars…

US currency, its privileged position, its importance in international medium of transactions: US has a history of trading with most of the countries because of which its transactions expanded with the rest of the world. When its transactions expanded with the external world, …

BRICS Bank – Is it a Good Idea for India?: In order to understand weather the new bank proposed for the BRICS a good or Bad, we need to know to whom is it considered good/bad…

Macro Economics Subject

Great Depression in 1929 and Keynes explanation (Keynesian Economics): In general, economists point of view is that; economies will always be close to the potential, there won’t be any slack in the economy because economies always believe that markets function perfectly…

Short Term and Long Term effects of demand and supply on the equilibrium point: Equilibrium Point: point where demand and supply meet in price-quantity graph…

Aggregate Demand and Aggregate Supply in an economy: AGGREGATE DEMAND: One way of looking at aggregate demand is from the quantity equation (MV = PY); for given value of ‘M’ , price ‘P’ is inversely proportional to output ‘Y’…

Inflation Tax or Seigniorage: Making the currency weak by printing a lot of money which devalues the currency and inflates the economy and hence results in financial loss of value for the cash holders…

GDP and Price Index in an economy: Nominal GDP is the GDP measured at current price. Real GDP is the GDP measured at constant price. This constant price is also called base year price…

Money and Inflation: Money is anything that allows us to carry out transaction. Inflation is rate of change of price. Relation between Money and Inflation can be represented by QUANTITY equation….

Role of government subsidies in Indian economy: In India, we are already running fiscal deficit every year and hence government borrowing money from the public savings and then giving it back to the public as SUBSIDIES…

Crowding Out Effect in Economics: If an entrepreneur wants to run business, he would like to borrow money from market (banks), and on the other hand, since government is running fiscal deficits…

Government Expenditure and Fiscal Deficit: Government carries out following expenditures: 1. consumption expenditure (pay salaries to govt officials, construct buildings, lands etc) 2. investment expenditure (infrastructure such as roads, dams etc)…

One of the reason for food inflation in INDIA: In INDIA, NREGS- National Rural Employment Guarantee Scheme, by government of India guaranteed the wages to every household which increased the wages…

GDP and role of Agri. and Ind. Sectors in Indian GDP: When we talk about GDP of the country, it means we are talking about all the economic activities that are taking place within the boundaries of the country. And whole subject of economics…

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