Under macroeconomics we will study economics from aggregate level. We will talk about the whole economy, problems related to economy, central banks, role of government, balance of payment, international trade and so on.

Showing 40 results for "Macroeconomics"

Excess Demand or Inflationary Gap

Excess demand or inflationary gap refers to the situation when actual aggregate demand is more than the aggregate supply corresponding to the full employment level of the output in the…

Deficient demand

Deficient demand means that the aggregate demand is less than the planned aggregate demand. Let’s understand the concept of deficient demand in detail. A quick note: Subscribe to our website to get…

Working of Investment Multiplier

The multiplier is represented by K. The investment multiplier works on a simple theory that the number of times by which the increase in income exceeds the increase in investment. It…

Investment Multiplier

The multiplier is the ratio of increase in national income due to an increase in investment. The investment multiplier is represented by ‘K’. K = Change in Y/ Change in…

How to solve problems on AD-AS?

The trick to solve problems on AD-AS is to remember all the formulas: S = -c + sY (-c is dissavings, s = MPS, Y = National Income) C =…

Determination of Equilibrium Output

For the determination of Equilibrium output there are 2 approaches: AD-AS ApproachS-I Approach  Let’s learn more about it. A quick note: Subscribe to our website to get answers to your curriculum questions.  Aggregate…

Types of employment equilibrium

Types of Employment Equilibrium

Under macroeconomics, there are 3 types of employment equilibrium: Full Employment EquilibriumUnder Employment EquilibriumOver Employment Equilibrium  Let’s learn more about it. A quick note: Subscribe to our website to get answers to your…

Concept of Short-Term Equilibrium (AD-AS)

According to the Keynesian theory, equilibrium is determined in terms of aggregate demand and aggregate supply. We reach an equilibrium level of output or employment, where AD = AS. In…

Aggregate Supply

Aggregate supply refers to the money value of final goods and services that all the producers are willing to supply in an economy during a given period of time. I…

Average and Marginal Propensity To Save

Hi there. In this post, I will be writing about the important points related to the average and marginal propensity to consume. I will recommend you to read my post…

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