Posts published in “MACROECONOMICS”

Monetary policy is concerned with the money supply to the economy, interest and the amount of credit available to households and firms.

This post describes the difference between income and wealth. It outlines basic problems of unfair and unequal distribution of income.

This article describes canons of TAXation and describes characteristics of a ‘good TAX’. It also explains three different TAX systems.

This article introduces Direct TAXation and Indirect TAXation. It also explains reasons for TAXation and describes the impact of TAXation on incentives.

This article identifies the main areas of public government expenditure in a country, in this case in the UK. Also, Fiscal policy and government expenditure.

This article defines investment and answers why businesses invest. It also explains Marginal Efficiency of Capital (MEC) and the determinants of planned investment.

This article defines consumption and saving as well as introduces The Average Propensity to Consume (APC) and The Marginal Propensity to Consume (MPC).

This article is about the definition of Aggregate Supply (AS), the Aggregate Supply (AS) curve and shifts in the Aggregate Supply (AS) curve.

This article is about the definition of Aggregate Demand (AD), the Aggregate Demand (AD) curve and shifts in the Aggregate Demand (AD) curve.

This article includes introduction to economic growth. It explains different ways of measuring economic growth and causes of growth.

This article is the debate whether a country such as Poland, Hungary or Sweden should join the common currency or not.

This article reviews the concept of the Circular Flow of Income (CFOI), National Income Equilibrium, Paradox of Thrift and The Multiplier Effect.

This article highlights the area of macroeconomics. Basic concepts of macroeconomics: economic growth, unemployment, inflation and trade balance.

The government can slow down economic growth by decreasing its own government spending, through higher TAXes and increasing interest rates. 

Government intervention may either support business activity to speed up economic growth or restrain it to slow down the economy.