TheBusinessProfessor, Author at TheBusinessProfessor

Tracking Real GDP

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

Why is Tracking Real GDP Important? Real GDP is important because it is highly correlated with other measures of economic activity, like employment and unemployment. When real GDP rises, so does employment.The most significant human problem associated with recessions...

Free Rider Problem for Public Goods?

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Free Rider Problem for Public Goods?Private companies find it difficult to produce public goods. If a good or service is nonexcludable, like national defense, so that it is impossible or very costly to exclude people from using this good or service, then...

Poverty Line – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Poverty Line?Poverty is measured by the number of people who fall below a certain level of income—called the poverty line—that defines the income one needs for a basic standard of living. The US poverty line has traditionally been based on the cost of a...

Public Safety Net – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Public Safety Net?The U.S. government has implemented a number of programs to assist those below the poverty line and those who have incomes just above the poverty line, to whom we refer as the near-poor. Such programs are called the safety net, to...

Measuring Income Inequality

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

How to Measure Income Inequality?Measuring income inequality means dividing the population into various groups and then comparing the groups, a task that we can be carry out in several ways. Measuring Income Distribution by QuintilesOne common way of measuring income...

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