by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is New Keynesian Economics?New Keynesian Economics was developed from the classical Keynesian economics, it is a contemporary macroeconomics school of thought that studies the rate at which prices and wages change. New Keynesian Economics as a modern version of...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Monetary Theory?The monetary theory is a macroeconomic theory that maintains that a currency or money supply is an important factor in economic activities. Changes in the economy are also linked to the money supply as posited by the monetary theory. In...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What are Diseconomies of Scale?Diseconomies of scale is a situation whereby the costs per unit of a company rises as a result of growth in business. What is the Effect of Disceconomies of Scale?In diseconomies of scale, the expansion of a business creates an increase...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Deflation?Deflation is an economic condition where the price of goods, services, and labor declines because of the increase in the purchasing power of the nation’s currency. The increase in the purchasing power of the currency is generally related to...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Demand-Pull Inflation?Demand-pull inflation is an economic situation that occurs when the demand for goods and services is more than the supply of goods or services. In an economy, when aggregate demand outpaces aggregate supply, it means there is an imbalance...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Poverty Trap?A poverty trap is a phenomenon that people can easily relate with because it exists in different economies, especially in the developing economies. A poverty trap is a mechanism that describes a situation whereby people find it extremely...
