by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Purchasing Power Parity (PPP)?Macroeconomic analysis is based on various metrics that are used to compare standards of living and economic productivity between countries across time. One such widely used metric is purchasing power parity (PPP). Purchasing...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Mercantalism?Mercantilism is an economic theory that holds that a nation’s wealth can increase when the government regulates the nation’s wealth by maximizing exports and reducing imports. Mercantilism was developed in the 16th and 18th centuries....
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the J Curve?A J curve is a visual depiction of a situation in which a measured factor decreases sharply over time before stabilizing and then improving quickly. In economic theory, the J Curve has been used to demonstrate that a country’s trade balance...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Keynesian Economic Theory?Keynesian economics was developed in the 1930s by John Maynard Keynes in the period of the Great Depression. It is an economics model that maintains that an economic output is greatly influenced by the total demand in the economy....
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Labor Theory Of Value?The Labor theory of value (LTV) was first conceived by Adam Smith, the founder of modern capitalism, before it was built upon by other economists. Using LTV, economists tried to provide an explanation for why commodities are exchanged...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Gross Domestic Product (GDP)?Gross domestic product (GDP) is the total monetary value of finished goods and services produced and offered within a country for a specific year. GDP versus GNPUnlike gross national product (GNP) that includes productions of...
