Cost-Push Inflation – Explained

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

What is Cost-Push Inflation?Cost-push inflation occurs when the total price level of goods rises as a result of an increase in wages and raw materials used in production. When there is a consistent demand for goods and there is a lower supply of these goods, then the...

Input-Output Analysis – Explained

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

What is an Input-Output Analysis?Input-output analysis (“I-O”) is a method of analysis in macroeconomics that observes the interdependencies between various sectors and industries in an economy. This form of macroeconomic analysis provides a breakdown of...

Liquidity Preference Theory – Explained

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

What is a Liquidity Preference?Liquidity preference concerns the extent to which individuals prefer to be liquid in their asset holdings.What is the Liquidity Preference Theory?The Liquidity Preference Theory concerns the relationship between the interest rate (the...

Linder Hypothesis – Explained

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

What is the Linder Hypothesis?The Linder hypothesis was proposed by Staffan Linder. The theory states that the more similarity a country shares in terms of total income generated, the more similarity they share in the consumption of products by consuming the same...

Expenditure Method (GDP) – Explained

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

What is the Expenditure Method?This expenditure method states that expenses of the government, private and public firms sum up the GDP. These indices contribute to the overall value of all finished goods and services over a period of time. In other words, the...

Constitutional Economics – Explained

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

What is Constitutional Economics?Constitutional economics is the study how constitutional law and interpretations constraint actions and choices by individuals. More specifically, constitutional economics investigates the state constitutional law constrains individual...