Banking offences as per the BOPA 2064 Latest amendment – 2082 There are 14 banking offences described by the Banking Offences and Punishment Act 2064 Section 3: Opening of an unauthorised bank account and demand…
The government’s role in the economy is always there, but it depends on some ideological perspective to define the nature and extent of the government’s role in the economy. It is the philosophical and ideological…
The effectiveness of the macro policies, such as fiscal policy and monetary policy, depends on the slope or shape of the IS and LM curves. It means the same fiscal and monetary policy may have…
#Effect of change in the government expenditure (ΔG): If there is a change in government expenditure, it affects the economy’s equilibrium income and interest rate. For example, an increase in government expenditure increases AD and…
If Aggregate Demand < Aggregate Supply = Price fall Recession/Depression If Aggregate Demand > Aggregate Supply = Price rises = Hyperinflation If AD = AS, then optimim price level is constant to full employment equilibrium.…
The Phillips curve is an economic concept developed by A.W. Phillips in 1958, which shows the relationship between inflation and unemployment. Phillips studied the relationship between the changes in wage rate and unemployment rate of the British economy…
Price (P) ↓ = Deflation ⇒ Expected Loss ↑ ⇒ Investment ↓, Employment ↓, Income ↓, AD ↓, Investment ↓ < Recession ⇒ Ultimately depression Price (P) ↑ = Inflation ⇒ Expected Profit ↑ ⇒…
In the previous note, we discussed the different approaches to inflation. Now we explain the types of inflation based on the causes. Basically, there are three types of inflation. Demand Side or Demand Pull Inflation…
Inflation is defined as a continuous and substantial rise in the general price level. It is a situation in which the value of money or purchasing power is continuously declining, increasing the cost of living…