Recessionary Trends, Its effect on Different Sectors of Economy and Remedial Measures

Recessionary Trends refer to the declining phase of the business cycle in which the economy experiences a period of reduced economic activity, falling levels of …

Reflation Concept, Characteristics, Measures and Implications

Reflation refers to a deliberate economic policy of increasing the money supply and/or reducing taxes and interest rates to stimulate aggregate demand and promote economic …

Acceleration Principle

The acceleration principle is an economic theory that explains the relationship between changes in the level of demand and the level of investment. According to …

Concept of Multiplier, Functioning of Multiplier, Assumption of Multiplier theory, Leakages and Shortcomings of Multiplier Theory

Multiplier is a concept in macroeconomics that refers to the phenomenon where an increase in autonomous spending (i.e. spending that is independent of changes in …

Concept of Savings, Determinants of Savings, Saving Function

In economics, savings refers to the portion of income that is not spent on consumption but is instead set aside for future use. Savings can …

Consumption Function, Attributes of Consumption Function, Propensity to consume, Significance of Consumption Function

Consumption Function

Investment, Investment Function, Determinants of Business Fixed Investment, Effect of Tax Determinants of Residential Investment and inventory investment

Investment refers to the process of purchasing capital goods such as machinery, equipment, and buildings that are used to produce goods and services in the …

Macro-Economic theory, Classical theory of Output and Employment Say’s Law of Market, Keynes Criticism of Classical theory

Macro-economic theory is the branch of economics that studies the behavior of the economy as a whole. It focuses on the analysis of aggregate variables …

Principle of Effective Demand, Aggregate Demand and Aggregate Supply

The Principle of Effective Demand is a key concept in Keynesian economics, and it is central to Keynes’ theory of output and employment. In this …

Circular flow of Money

Circular flow of money is a fundamental concept in macroeconomics that describes the flow of money and goods between households, firms, and the government in …

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