Autonomous Investment
Ajit Kumar Autonomous investment, also known as exogenous investment or induced investment, is a concept in macroeconomics that refers to a type of investment that is not influenced by changes in the…
Macro
Consumption function
It is the function that represents the relationship between consumption and income. It depicts a positive relationship between the two variables and helps in determining the rate of change in…
Law of consumption
This law was introduced by the renowned economist Keynes. This law states that, with an increase in income, the consumption also increases but at a lesser rate as compared to…
Circular flow of income
When a producer produces a product or service with the help of different factors of production like labour, capital, land, etc., and after production, payment is made to each factor…
Difference between Capital Goods and Consumer Goods
Capital Goods Consumer Goods 1. These goods are used by producers as a part of the production process.2. These goods are used to generate revenue.3. e.g., Coffee machine 1. These…
Classification of goods
1. Consumption Goods : These are the goods which are directly consumed by a buyer/consumer. For example Butter, bread, vegetables, smartphones, Furniture, etc. 2. Durable Goods These are the goods…
Macro Economics
Macroeconomics deals with the aggregate of systems of the economy. For example, aggregate demand, aggregate supply and Gross domestic product (GDP), etc. It measures the economy as a whole.
Understanding the Basics of Macro Economics
theamitkumar Macro economics is a branch of economics that studies the behavior and performance of an economy as a whole. It focuses on the factors that affect the overall economy, such…