Inflation Inflation is a sustained increase in the general price level of goods and services in an economy over time. When the general price level increases purchasing power of money decreases and each unit of money buys fewer goods and services. Thus, money losses its value. Prof. Coulborn defines inflation
In this post we will discuss the concepts of nominal GDP, real GDP, GDP deflator and inflation. Before going forward we must know what GDP is? Gross Domestic Product is the total market value of all final goods and services produced within a country in a year. To see more
Aggregate Demand Aggregate demand is the total quantity of goods and services demanded by all households, all firms, government and foreign sector in a year. It is the sum of consumption, investment, government expenditure and net exports. It is also called aggregate expenditure or aggregate spending. Therefore, AD represents the
What is National Income? Before defining national income, it is necessary to define income. Any benefit either in form of money or other that is received against a service is called income. There are four sources of income for an individual. Rent: It is the income receive from lending their