Fiscal policy has powerful effects upon economic activity led to the Keynesian approach to macroeconomic policy which is the active use of government action to moderate business cycles. Keynesian macroeconomics policies are First, the explicit dedication of macroeconomic policy instruments to real economic goals in particular full employment and real growth of National … [Read more...] about Keynesian macroeconomic policy
Why we give money to its value? Money has value because of its general acceptability. We accept paper dollars because we know that other people will accept dollars later when we try to spend them. Money has value to people because it is widely accepted in exchange for other goods that are valuable. Money and the price level Question: Do changes in the … [Read more...] about Velocity of money
Definition of Money Money is anything that serves as a commonly accepted medium of exchange or economic transactions. Description of money’s evolution: Some years since, Zelie a singer of the theatre Lyrique at Paris, took part in the Society Islands. She got three pigs, twenty-three turkeys (large bird), forty-four chickens, five thousand cocoanuts, besides considerable … [Read more...] about What are the functions of money?
A nation has two major kinds of policies fiscal policy monetary policy that can be used to pursue its macroeconomic goals 1. Fiscal policy: Fiscal policy consists of government expenditure and taxation. we know it from the definition of fiscal policy. Government expenditures come into two distinct forms - government purchases which comprise spending on goods and services such … [Read more...] about Fiscal policy and monetary policy
Definition of economics: Economics comes from Greek word "Oikonomia". Adam smith explained the definition of economics in his famous "Wealth of Nations" that "Economics is a science which enquires the cause of wealth. Prof. Marshall said, “A study of man's action in the ordinary business of life." Difference between microeconomics and macroeconomics The difference between … [Read more...] about Difference between microeconomics and macroeconomics