Definition: Demand Curve is a precise set-up to describe the relation amidst price and quantity demanded. It is a graph representing the relationships between the price of a product and the quantity of product that customers are pleased with and ready to purchase at the given cost. Demand Curve is drawn on the presumption that all the other factors of demand indexed earlier … [Read more...] about Demand Curve
Economics
Purchasing Power Parity (PPP)
Definition: Purchasing Power Parity (PPP) is a beneficial tool for determining the exchange rate. The Purchasing Power Parity among the two nation’s currencies is the nominal exchange rate at which accustomed basket of services and goods would charge the constant amount in every nation. For instance, Suppose the basket of services and goods that charges. 100 £ in the UK, … [Read more...] about Purchasing Power Parity (PPP)
Indexation
Definition: Indexation is relief on long-term investments. A long-term investor can claim it merely by showing that, the value of their assets raised is not a real gain, but it rises only due to inflation. It is the inevitable link between monetary constraints and price level. It diminishes the cost of inflation and is enforced on interest, taxes and wages. For instance, … [Read more...] about Indexation
Inflation
Definition: Inflation implies acceleration in the universal price level or moderate level of prices, of all goods and services. In microeconomics, the price of goods is determined when the demand is equal to its supply. Precisely, any factor that either reduces supply or increases demand creates Inflation and when the general price level continues to rise over a long time, it … [Read more...] about Inflation
Gross Domestic Product (GDP)
Definition: Gross Domestic Product (GDP) is the total market value of the services and final goods formed within a nation's boundaries in a financial year. It is used to measure the comprehensive achievement of an economy. The nations' GDP growth is calculated with an increase in the GDP from the previous year to the current year, which can be calculated yearly or … [Read more...] about Gross Domestic Product (GDP)
Isoquant Curve
Definition: An isoquant curve is that convex shaped curve which is formed by joining the points depicting the different blends of the two production factors, providing constant output. Here, the term 'isoquant' can be cracked into 'iso' which implies equal and 'quant' that stands for quantity. The word altogether means the same volume or constant output at all points. The … [Read more...] about Isoquant Curve
Macroeconomics
Definition: Macroeconomics is that specialized field of economics which focuses on the overall economy. It works on the aggregate value of the various individual units, to determine its more substantial impact on the whole nation. All the prominent reforms and policies are based on this concept. For instance; the nation's income is computed as the per capita income, which is … [Read more...] about Macroeconomics
Public-Private Partnership (PPP)
Definition: Public-private partnership (PPP) is a model where the government associates with private companies to accomplish infrastructure projects. This alliance between both the parties, ensure financing, designing, flourishing and maintaining of the infrastructural amenities within the country. The PPP approach initiates the efficient facilitation of public goods to the … [Read more...] about Public-Private Partnership (PPP)
Price Sensitivity
Definition: Price sensitivity refers to the degree or extent to which the consumer's buying behaviour varies with the change in the price of the product or service. In simple terms, it determines the level to which buyers or consumers are conscious about the price of a particular product or service. It is also termed as price elasticity of demand, which shows the effect of … [Read more...] about Price Sensitivity
Monetary Policy Vs Fiscal Policy
Both monetary policy and fiscal policy go hand in hand when it comes to the economic stability and growth of a nation. The most significant difference between the two is that monetary policy is introduced as a corrective measure by the central bank to control inflation or recession and strengthen the Gross Domestic Product (GDP). Whereas, fiscal policy is implemented each year … [Read more...] about Monetary Policy Vs Fiscal Policy