Economic Growth And Development

What is the difference between Economic Growth and Development? We will start by defining Economic growth and development. Having economic growth without economic development is possible.Economic growth in an economy is demonstrated by an outward shift in its Production Possibility Curve (PPC). Another way to define growth is the increase in a…
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Say’s Law

Say’s Law is short for “Say’s Law of Markets,” which states that the production of goods produces its own demand. In other words, supply creates its own demand.People are paid to create goods and/or services, and can then spend that money on other goods/services. And there’s no point in holding onto money for long periods without spending it,…
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Determinants of Demand

The determinants of demand are factors that cause fluctuations in the economic demand for a product or a service. A shift in the demand curve occurs when the curve moves from D to D₁, which can lead to a change in the quantity demanded and the price. There are six determinants of demand. These six factors are not the same as a movement along the…
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Components of Aggregate Demand

There are four components of Aggregate Demand (AD); Consumption (C), Investment (I), Government Spending (G) and Net Exports (X-M). Aggregate Demand shows the relationship between Real GNP and the Price Level.Four Components of Aggregate Demand Any increase in any of the four components of aggregate demand leads to an increase or shift in…
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The Best Economics Books

Whether you have no formal knowledge of economics, or you took a couple of economics courses in college, or you’re a current economics major, you might be looking for interesting and well-written books to help you gain a deeper understanding of this complex and influential discipline.We’ve compiled a list of some of the best economics books out…
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Externalities

Externalities are a form of market failure. Externalities are defined as the spillover effects of the consumption or production of a good that is not reflected in the price of the good. For example, the production of steel results in pollution being released into the air, but the cost of the pollution to the environment is not reflected in the…
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