Economic Impact of Inflation, Inflation, Macroeconomics
There are many deadly effects of inflation. Two of the most important are: Redistribution of Wealth and Income among the People Distortion in the Production of Goods, employment and relative Prices (During Periods of Inflation all prices and wages do not change at the...
Balanced and Unbalanced Inflation, Inflation, Macroeconomics
Balanced Inflation Consider its title “Balanced”, a type of inflation when all the prices increases proportionately. So its more like an increase in the prices of all of the Products rather just a few. This kind of inflation manage your money matters accordingly as...
Anticipated vs. Unanticipated Inflation, Inflation, Macroeconomics
Anticipated Inflation We can simply understand this phenomenon by its title “ANTICIPATED” , which means Predicted or “KNOWN”. Such a “PREDICTED INFLATION” does not cause enough harm to the people since you can handle it by proper planning. For Example you know that...
Deflation Vs Disinflation, Inflation, Macroeconomics
Deflation and Disinflation are not the same. Although they all show the behavior of Price level but They are different in their direction and change in the Rate of Price Level. Deflation means an opposite to Inflation Or Falling Price (just like we have rising prices...
Inflation, Macroeconomics
One of most common yet very very important topic of Macroeconomics which is also considered to be one of the fundamental economic issue that is “INFLATION”. A general definition of Inflation is Inflation is a rise in the general Price Level Remember, Inflation is not...
Microeconomics, Perfect Competition, Profit Maximization in Short-Run
There is a very basic concept of understanding Profit maximization either for Perfect Competition or another market model. For almost all markets, the concept is similar. Total Revenue If Q is output of the firm, Total Revenue is : Total Revenue = Price x...
Microeconomics, Perfect Competition
Although this type of market does not have a real or physical existence, yet it is most importantly used for understanding the Basic Market models of Economics. Let us discuss this topic step by step: Basic Assumptions of Perfectly Competitive Markets Price taker: The...
Production, Production with Fixed Input
Why do we need to know about Average and Marginal Product ? When we are talking about Production with One variable or in other words when we a firm is producing something with the limited constraint of having a fixed variable , say Capital in the Short-Run. Also, only...
Cost, Economics of Scope, Microeconomics
Economics of Scope A condition in which a combined output of a Single Unit/Firm can produce more than Two different firms which produces the same product. There are valid possibilities of such firms which has Economics of Scope. For Example: Automobile Production...
