Gross Domestic Product or GDP is the aggregate monetary value of final goods and services produced within the geographical boundary of a country within a specific time, normally a year. Why is GDP the most…
What is the LM Curve? L = Liquidity demand (money demand) M = Money supply The LM Curve shows the relationship between interest rate {r} and income/output (y) when the money market is in equilibrium.…
There is no single specific theory of underdevelopment. However, there are different theories under different names that try to explain the persistent underdevelopment of the low-income countries throughout the world. Such theories are named differently…
Growth vs Stability is one of the basic trade-offs in the economy, which shows that if we are focused on growth, it threatens stability, and being focused only on stability is costly for economic growth.…
It refers to the standard framework and procedure that the International Monetary Fund (IMF) follows while assisting the member countries suffering from an external sector crisis. If any member country suffers or is likely to suffer…
Firm’s productivity improves Only if new methods/equipment are added externally – S-S Growth Model (Exogenous) From the same set of inputs/machines – Endogenous Growth Model (Endogenous ) पहिला पहिला कठिन हिसाब सरल गर्न धेरै लामो…
Solow – Swan Growth Model – A representative of the neo-classical growth model Developed by Robert Solow and Trevor Swan in 1956. Solow and Swan developed their growth model independently based on the neoclassical framework, but we…
Developed independently by Roy F. Harrod in 1939 and Evsey Domar in 1946. Harrod–Domar growth model is one of the Keynesian models of economic growth. The H-D growth model is the dynamic extension of the Keynesian…
Previously, we discussed the Inter-temporal Choice in Consumption. The next theory is N-M utility theory. Neumann Morgenstern Utility theory is one of the theories to explain consumption under risk and uncertainty in economics. It is…