Positive economics and normative economics
The subject of economics is divided into two classificationsPositive economicsNormative economics These two functions are basics of economics. Learning economics starts with these two subjects....
View ArticleDifference 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...
View ArticleFiscal policy and monetary policy
A nation has two major kinds of policies fiscal policy monetary policy that can be used to pursue its macroeconomic goals1. Fiscal policy: Fiscal policy consists of government expenditure and...
View ArticleWhat are the functions of money?
Definition of MoneyMoney 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...
View ArticleVelocity 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...
View ArticleKeynesian 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...
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