by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Inflation?Inflation is a measure of the degree at which the median price level of a set of goods and services and other commodities increase over a period of time or a designated duration. A basic definition of this concept is that it is the constants increase...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Giffen Good?A Giffen good is any commodity which has an upward demand slope. That is, a Giffen good is any product which commands a higher demand when the price is increased, and commands a lower demand when the cost is reduced.This is quite rare in...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Free Market?A free market refers to an economy in which there is only limited governmental regulation. Principles of Supply and Demand control the production and pricing of goods. The system is contrary to the regulated market where the government...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Supply Curve?The supply curve refers to a graph showcasing the relationship between the cost of a product or service, and its supply for a specific period of time. When allocating points in a graph, the vertical axis represents the price, while the...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Supply-side Theory?The supply-side theory refers to an economic theory mentioning that if an economy supplies more goods and services, it would be the best way to achieve economic growth. Considering the fiscal level, the supply-side theory emphasizes on...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Wealth Effect?The wealth effect creates the psychological effect that the increase in asset values has a direct impact on consumer spending. This states that consumer confidence automatically improves when the value of assets rises. And this confidence...
