Even though developing nations have very different backgrounds in terms of resources, history, demography, religion and politics, they still share a few common characteristics.
Central banks oversee the banking system in their country. They play an important role in managing a state’s currency, money supply, and interest rates.
A fall or left shift in Aggregate Supply is the cause of Cost-Push Inflation. This shift can occur from an increase in the cost of production or a decrease in the volume of production.
Demand Side Policies are attempts to increase or decrease aggregate demand to affect output, employment, and inflation. Demand Side Policies can be classified into fiscal policy and monetary policy.
A bill of exchange is a specialized type of international draft used to expedite foreign money payments in many types of international transactions. In addition, a draft is commonly used in the U.S. while a bill of exchange is primarily used outside the U.S.
In the Cost Theory, there are two types of costs associated with production – Fixed Costs and Variable Costs.