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Category Archives for "Economics"

Keynesian macroeconomic policy

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 income. Second, […]

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Velocity of money

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 […]

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What are the functions 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 […]

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Fiscal policy and monetary policy

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 […]

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Difference between microeconomics and macroeconomics

 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 […]

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Positive economics and normative economics

The subject of economics is divided into two classifications Positive economics Normative economics   These two functions are basics of economics. Learning economics starts with these two subjects. Description of positive economics and normative economics are below   Positive economics: What is positive economics? Positive economics is that economics where the problems of a country […]

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