Aggregate Demand : Summary

 Aggregate Demand We know that when it comes to people demand for money – there are 3 elements that has the ability to change the decisions of the individuals in either spending more or less. And these elements are: Income (Output) Interest rate (I) Price Level (P) In...

Circular Flow of Income

Circular flow of income is a neoclassical model which tells us how income or money circulates in an economy. Circular flow of income means that income and expenditure  in an economy are related to each other in a circular way. Receiving of income and production of...

Types of Unemployment

‘’Unemployment refers to the situation or conditions of an economy when skilled and qualified are willing to work at the current wage rate but they couldn’t get job’’ Unemployment effects an economy is an adverse manner. Unemployment has various kinds. Each kind of...