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## What are Index Numbers ?

Introduction Often we want to know how certain variables like prices, production, etc. have changed over time and space. For example, we may like to compare the change in the average retail price of milk in 1985 with that in 1982 or we may like to compare the retail...

## Multiplier Effect Definition,Calculation and Types

It’s an effect in economics that shows how much or by how many times final incomes increases if some extra initial injection of investment/spending is done, known as multiplier effect. How it occurs? Holding a thought on the occurrence of multiplier process and...

## What is GDP Per Capita and how is it calculated ?

What does GDP Per capita mean? GDP and GDP per capita are interlinked, putting a glance on its history how Per capita came from the concept of GDP. The great invention of 20th century GDP that stands for Gross Domestic Product. Taking Gross here a number of total,...

## Commodity Money vs Fiat Money

There has been numerous stories about exchanges of goods as a form of money in different circumstances . Like there were Cigarettes used in WWII by the prisoner of War camps, beads used by north american Indians , cattle in south Africa, and small green scraps of...

## Major problem with using GDP

GDP is considered to be the most simplest and common economic statistics that measures the economic activity of the economy that takes place within a year – that leads to the analysis and conditions of various factors such as investments, household consumption ,...

## Difference between aggregate supply and market supply curve

By definition, the Aggregate Supply curve shows the relationship between the Aggregate Quantity Supplied by all the businesses and firms of an economy and the over price level. The sum of the individual supply curve is not the aggregate supply curve. Why? To know more...

## What is Money ?

To explain it with a formal definition Money is : Anything that is accepted as a way of exchange to buy products and services The basics mechanics of the whole monetray system are invisible. Many individuals take money for granted when they are spending it. So when...

## Shifts in Aggregate Demand Curve

We just assumed that the Monetary and fiscal policy variable are kept constant when deriving the Aggregate Demand Curve. So any changes made in the following variable will shift the curve. Money Supply Consumption (household spending) Investment Government Expenditure...

## Everything about GDP (Gross Domestic Product)

I have made an amalgamation of all the posts that I and my contributing writers have written about GDP Please leave a Message if you require further notes and lectures regarding the concept of GDP.  What is GDP ?  GDP growth rate and Calculation Types of GDP (Nominal...

## Dependent, Independent and Conditional Probability

Independent and Dependent Events The events A and B are said to be independent if the occurrence or non-occurrence of event A does not affect the probability of occurrence of B. This means that irrespective whether event A has occurred or not, the probability of B is...