Keynesian economics

Reading Todd G. Buchholz 's book: From Here to Economy A Shortcut to economic literacy, is a nice way to understand some economic concepts with it 's sometimes humorous examples and interesting questions he likes to ask. As Peter Passell says it is "A painless even entertaining way to learn the basics." On page three Buchholz says he wants to make economy "sizzle" instead of it being dry, tough, and tasteless like a dry steak and make economy easier to swallow. I think he did a good job, for the…

As mentioned before, he was also awarded a Nobel Prize, shared with another economist, Ragnar Frisch. His contributions also remain to be acknowledged in his multiple books he left behind. Every day when mathematics and statistics are applied to economics, Jan Tinbergen is the one to look back…

contribute significantly toward economic development and improving the living standards of people. They also include clearing and settlement systems that are used to facilitate trade and channeling financial resources between borrowers and savers. Banks specializes on receiving deposit and assessing the credit worthiness of the borrower before issuing money. Banks are very critical in the economy because they ensure money circulations hence affecting the economic development of a…

Inflation is the “increase in the general price level of goods and services in an economy” (Heakak, 2017). Inflation can be broken down into different types, resulting from different situation in the economy. When there is a change in the supply side of the economy, cost-push inflation occurs. On the other hand, when there is a change in the demand side of the economy, demand-pull inflation occurs (Surbhi, 2017). Deflation and disinflation help to describe the level of inflation is in an economy…

When we speak of monetary policy in the field of economics, one concept that arises in the mind of each thinker is Bangko Sentral ng Pilipinas (BSP). One of the objectives of BSP's monetary policy is to stimulate a low and even inflation (increase in the general level of prices for goods and services) favorable to a balanced and sustainable economic growth (increase in the number of goods and services produced in the country. It was recognized on July 3, 1993 in agreement to the establishment…

Supply shock refers to a sudden, unexpected event that changes the supply of a product, commodity or service. This results in a sudden change in its price and either increases or diminishes its supply. Contemporary economic theory explains that a supply shock creates a material shift in the aggregate supply curve and thus forces prices to find a new balance. Supply shock can be positive where there is an increased supply or negative when supply is decreased. Its effects can be either long…

demand (demand placed on one industry by another in the same system), the Leontief model represents the economy as a system of linear equations. The Leontief model was invented in the 30’s by Professor Wassily Leontief (picture above) who developed an economic model of the United States economy by dividing it into 500…

. What is inflation risk? Inflation is the rise or fall of a price by a certain time. It could something right now then be raised tomorrow or fall tomorrow. This makes it difficult to buy items at a certain time because everyone wants to save money, so if they hear that its 900$ tonight and tomorrow it’s going to be 1200$ then you’re going to want to get the item tonight. Black Friday is a big example of inflation risk. 2. What are opportunity costs? Give an example of an opportunity cost. It…

government decisions . Macro economics and micro economics, and the wide spectrum of of the number of underlying concepts, has been the subject of a great deal of writings. The field of study is quite larget; and here is a short summary of what both of them cover: Microeconomics Microeconomics is the study of decisions that companies of all kinds, and humans make, regarding the distribution of resources and the prices of different types of goods and services.…

Unemployment rate The definition of unemployment rate is percentages of total workforce who are unemployed and are looking for a job. It can be measure the unemployed in a country and indicates a growing economy which is usually accompanied by higher inflation rate and may influence the interest rate higher or lower. Figure 1: Unemployment rate in Italy from Year 2000 until Year 2016 Based on Figure 1 for the year 2000 the percentage rate of unemployed in Italy is gradually decrease until…