Gross Domestic Product (i.e., GDP) is one of the most common measures of economic output and strength. Virtually all countries around the world measure and report their GDP regularly. This allows us to compare their economic power. Fortunately, the World Bank provides a comprehensive database of economic indicators, including current and […]
Read moreMonth: May 2018
How to Calculate Marginal Propensity to Consume
Marginal propensity to consume (MPC) is defined as the share of additional income that a consumer spends on consumption. That means it describes the percentage of additional income they spend on buying goods and services, instead of saving. Hence, the marginal propensity to consume can be calculated as the change […]
Read moreDifference between Individual and Market Demand
t In an economic context, demand is defined as the quantity of a specific good or service that consumers are willing and able to buy over a given period. As you can tell, this definition looks at all consumers combined (i.e., aggregated data). However, individual consumers may have different preferences […]
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