by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Unit of Account? Third, money serves as a unit of account, which means that it is the ruler by which we measure values. For example, an accountant may charge $100 to file your tax return. That $100 can purchase two pair of shoes at $50 a pair. Money acts as...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Standard of Deferred Payment? Finally, another function of money is that it must serve as a standard of deferred payment. This means that if money is usable today to make purchases, it must also be acceptable to make purchases today that the purchaser will...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a National Saving and Investment Identity? The national saving and investment identity provides a useful way to understand the determinants of the trade and current account balance. In a nation’s financial capital market, the quantity of financial capital...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Standardized Employment Budget?The standardized employment budget is the budget deficit or excess for any given period modified to reflect what the business would generate if it were functioning at potential GDP.Every year, the Congressional Budget Office...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What are Twin Deficits?Twin deficits refers to the situation where a country has both a budget deficit and a trade deficit at the same time. Back to:ECONOMIC ANALYSIS & MONETARY POLICYRelated Topics What is Government Spending? Autonomous Spending Autonomous...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Cyclical Unemployment? Let’s make the plausible assumption that in the short run, from a few months to a few years, the quantity of hours that the average person is willing to work for a given wage does not change much, so the labor supply curve does not shift...
