by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Theory of the Firm?The theory of the firm refers to the microeconomic approach devised in neoclassical economics that every firm operates in order to make profits. Companies ascertain the price and demand of the product in the market, and make optimum...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Fiat Money?Fiat is a word in Latin that means let us do it our way, or it shall be. In economics, fiat money or fiat currency is money that obtains its value from a governments legal tender, rather than from a physical commodity like gold or silver. The value...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is does Dovish Mean?Dove refers to an economic policy adviser who advocates for monetary policies involving low-interest rates. The doves argue that inflation isnt bad and that it is bound to have few negative effects on the economy. They also believe that...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Nominal Gross Domestic Product?Nominal gross domestic product otherwise called nominal GDP refers to the GDP of a country calculated at the current market prices. This means that all goods and services produced in a country at a particular time are evaluated...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Normative Economics?Normative economics seeks to determine the objectives or preferences of society and employs economic policies toward achieving those objectives or preferences. Economic policies are used to make things “how they should be”. How...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is an Exchange Rate?An exchange rate refers to the value of one currency in relation to another currency. It is the rate at which a currency will be exchanged for another currency. In finance, an exchange rate reflects the worth of one currency over others or...
