Latest Articles:

1. Types of Economic Goods Vs Free Goods (with Examples)

   Jul 31, 23 02:17 PM

   There are many different types of economic goods in the marketplace, and consumers choose between them based on all sorts of dynamic circumstances. Click here for details.

2. Giffen Goods Theory & Examples

   Jul 31, 23 02:14 PM

   Examples of Giffen goods, where demand increases for good as its price increases are very rare. However, this is not just a theoretical possibility, read more.

3. Understanding Inferior Goods & how they impact the economy

   Jul 31, 23 02:13 PM

   Inferior goods are distinguished by consumers demanding fewer of them as their incomes rise; and many normal goods can become inferior at higher income levels.

4. What are Normal Goods in Economics?

   Jul 31, 23 02:13 PM

   Normal goods are everyday items that consumers demand more of as their incomes increase. However, at some point, a normal good may become inferior.

5. Merit Goods & Demerit Goods Explained (with examples)

   Jul 31, 23 02:12 PM

   Merit goods and demerit goods come with externalities, meaning that markets tend to over or under supply them, thereby requiring government corrective action.

6. Veblen Goods Theory & Examples

   Jul 31, 23 02:12 PM

   In economics, Veblen goods are a subset of luxury goods, but they exhibit increasing demand when their prices increase. For real-world examples, click here.

7. Complementary Goods & Substitute Goods Explained (with Examples)

   Jul 31, 23 02:11 PM

   In economics, complementary goods and substitute goods relate to each other in ways that the demand for one good is affected by price changes in the other.

8. Imported Inflation; how a strong USD exports inflation

   Jul 28, 23 04:12 PM

   Imported inflation refers to the increase in the domestic prices due to the rising cost of imported inputs, and a strong USD makes it worse for most countries.

9. Marginal Propensity to Save Problems & Criticisms

   Jul 04, 23 10:12 AM

   The marginal propensity to save is defined as rate at which saving increases as income increases. At the level of the economy, it has important consequences.

10. What is Marginal Propensity to Consume? (Formula & Examples)

    Jul 03, 23 01:17 PM

    The marginal propensity to consume, in economics, relates to how much extra spending on goods and services results from an increase in disposable income.

11. What is a Good Unemployment Rate?

    Jul 01, 23 01:06 PM

    Agreement on what a good unemployment rate is varies depending on circumstances, because a rate that is low is one thing, but sustainably low is another...

12. Autonomous Consumption Explained

    Jun 30, 23 11:20 AM

    In economics, autonomous consumption refers to that part of consumer spending that occurs independently of disposable income i.e., it is funded by dissaving.

13. What is Induced Consumption, and is it Good or Bad?

    Jun 29, 23 07:29 AM

    Induced Consumption has distinct meanings in both macroeconomics and microeconomics. It can relate either to the consumption function, or to consumer behavior.

14. The Aggregate Expenditure Model Explained (with Graphs)

    Jun 28, 23 12:43 PM

    Aggregate Expenditure is a concept from Keynesian economics; it is used to model how changes in the components of overall spending affect economic stability.

15. The Keynesian Theory of Consumption Explained

    Jun 24, 23 05:54 AM

    The Keynesian Theory of Consumption underlies mainstream macroeconomic policy formulation with regard to stabilizing the economy. However, it has its faults…

16. Types of Price Controls in Economics?

    Jun 23, 23 06:56 AM

    Government price controls are a direct intervention in the economy to prevent the official prices of targeted goods and services from rising.

17. Menu Costs in Economics, Explained & Debunked?

    Jun 22, 23 07:52 AM

    The existence of menu costs in economics is given prominence by Keynesians who see it as one of the primary reasons for price rigidity, but is this justified?

18. How Does Government Spending Affect Aggregate Demand?

    Jun 21, 23 02:56 PM

    How does government spending affect aggregate demand - increases cause expansion, decreases cause contraction.

19. Stagflation vs Stagnation Explained

    Jun 21, 23 08:55 AM

    The challenges of stagflation vs stagnation can be distinct, but there are also similarities. Click here for details...

20. Is Stagflation Worse That Recession?

    Jun 21, 23 08:55 AM

    Is Stagflation worse than Recession and in what circumstances do these difficult economic problems arise? Click here for details...

21. What happens to House Prices during Stagflation?

    Jun 21, 23 08:55 AM

    What happens to house prices during stagflation depends on many different factors, some positive, some negative. Click here for details.

22. Inflation Vs Deflation Explained (with a Case Study)

    Jun 11, 23 03:55 AM

    The occurrence of inflation vs deflation might seem like the probability of a pendulum swing from one extreme to another, but that is mistaken. Here’s why…

23. Wage and Price Controls (Incomes Policy) Explained

    Jun 03, 23 06:29 AM

    Wage and price controls, also known as incomes policy, is one of the most common approaches to tackling inflation, but does it work?

24. The Effects of Inflation Explained

    Jun 02, 23 12:51 PM

    The effects of inflation, on consumers and on the economy as a whole, are felt disproportionately across individuals, industries, products and assets...

25. What is Hyperinflation in Economics?

    Jun 02, 23 12:48 PM

    Hyperinflation is a situation where the general level of prices in a country is rising so fast that its national currency is in danger of collapsing.