Economics
In this category you will find information on economics, both in terms of macroeconomics and microeconomics. Economics is an important basis for the understanding of financial markets and financial instruments.
The production possibility curve is a simplified image of the quantity that can be produced in an economy. A production possibility curve are plotted for only two products and it demonstrates the impo ...
In a market economy, goods and services can be bought and sold on a market. Public goods can not be bought and sold on a market. ...
Purchasing power parity implies that the price level in two countries always will be equal, when the exchange rate has been taken into account. Purchasing power parity is explained in two different ve ...
The Rehn / Meidner model is a model of the labor market that was created by Gosta Rehn and Rudolf Meidner. The basis for the Rehn / Meidner model is that there is a conflict between full employment an ...
The reserve ratio is the proportion of bank deposits that banks must hold as reserves, these reserves can not be lent out. The reserve ratio is determined by the central bank. ...
Saving in economics means that a country is abstaining from consumption. Households may refrain from consuming and the public sector may cut back on their spending to increase savings in the economy. ...
Scarcity is an important concept in economics. Scarcity means that resources such as manpower, natural resources and capital are limited and never can satisfy everyone's needs and preferences as these ...
Short term aggregate supply is described in an AD-AS model using a SAS curve. A SAS curve is a straight line with a positive slope that describes the relationship between supply and price level when a ...
The speculation motive is a reason why money is demanded in an economy according to the keynesian monetary theory. ...
Stabilization policy means a fiscal policy that aims to smooth out cyclical fluctuations in the economy. ...