Budget
Ajit Kumar A budget is a financial plan that outlines the estimated income and expenses over a specific period, typically on a monthly or annual basis. It serves as a tool for…
Economics
Methods of Credit Control
Credit control refers to the various measures taken by a central bank or monetary authority to regulate and manage the availability, cost, and use of credit in an economy. Effective…
Understanding Monetary Policy: A Key Tool for Economic Stability
Monetary policy refers to the actions and tools that a country’s central bank or monetary authority uses to control and regulate the money supply and interest rates to achieve specific…
Understanding the Investment Multiplier
The investment multiplier, also known as the expenditure multiplier or simply the multiplier effect, is an economic concept that measures the impact of changes in investment spending on overall economic…
Understanding Say’s Law of Market
Say’s Law of market is an economic principle that asserts that production is the source of demand. According to this law, the ability to demand goods and services is derived…
Voluntary Unemployment
What is Voluntary Unemployment? Voluntary unemployment refers to a situation in which individuals who are capable of working and actively seeking employment choose not to work for various reasons, often…
Autonomous Investment
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…
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…