by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Rational Choice Theory?The rational choice theory refers to a school of thought that attempt to clarify conforming and well as a deviant phenomenon in a social setting. It is a framework for comprehending both social and economic behavior. This theory is of...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Income Effect?The income effect is an economic theory that describes how changes in wages and prices affect the demand for goods and services. Income effect is seen when there is a change in the demand for commodities and services as a result of a change...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Income Elasticity of Demand?Income elasticity of demand is an economic concept that measures how demand for a particular good responds to a change in the real income of consumers. It examines the link between real income and demand for goods and how quantity...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Walras’ Law?In economics, Walras law is a theory that maintains that surplus in one market must be adequately complemented by insufficiency in another market so that the market will be in equilibrium. Walras law was developed in 1874 by Lon Walras, a...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Real Economic Growth Rate?The economic growth rate is a kind of rate which measures the countrys economic growth in relation to the gross domestic product (GDP), in each periodic year. GDP refers to the value of the market of all goods and services...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Real Bills Doctrine?Real bills doctrine is a term used to refer to the means through which inflation is prevented. In other words, it is a means of growing the quantity of money as well as a means of shrinking it, according to the business needs, so as to...
