Archives: Terms

Definition of Redlining Redlining is a discriminatory practice in which lenders deny loans or insurance to individuals or businesses based on their race, ethnicity, or neighborhood. The term “redlining” originated from the practice of drawing red lines on maps to indicate areas where loans would be denied. This practice was […]

Definition of Recessionary Gap A recessionary gap refers to the difference between a country’s actual level of output and its potential level of output during a period of economic downturn or recession. It represents a gap between what an economy is capable of producing and what it is actually producing. […]

Definition of Recession A recession is a significant decline in economic activity lasting for an extended period of time. It is typically characterized by a contraction in GDP, high unemployment rates, and a decrease in consumer spending. This economic downturn affects multiple sectors of the economy and is generally considered […]

Definition of Real Income Real income refers to an individual’s purchasing power, or the goods and services that can be purchased with a given amount of money. Unlike nominal income, which is the actual amount of money received, real income takes into account changes in purchasing power due to inflation […]

Definition of Real Gross Domestic Product (GDP) Real Gross Domestic Product (GDP) is a measure of the total value of all final goods and services produced within a country’s borders in a given time period, adjusted for inflation. Unlike nominal GDP, which is measured using current prices, real GDP controls […]

Definition of Real Economic Growth Rate The real economic growth rate is a measure that represents the percentage change in a country’s gross domestic product (GDP) over a specific period. It is used to assess the overall health and expansion of an economy. Unlike the nominal GDP, which is calculated […]

Definition of Reaganomics Reaganomics refers to the economic policies implemented by President Ronald Reagan in the 1980s. The term is a combination of Reagan and economics and is often used to describe the Reagan administration’s approach to fiscal and monetary policies. Example During his presidency, Ronald Reagan aimed to stimulate […]

Definition of Raw Materials Raw materials are the basic substances or resources that are used in the production or manufacturing of goods and products. They are typically found in their natural state and have not yet undergone any processing or transformation. Example Let’s take the example of a furniture manufacturer […]

Definition of Rationing Rationing refers to the distribution of limited resources or goods among a larger population in order to ensure fairness and equality. It is a system that controls the allocation of scarce resources during times of shortage or high demand. Rationing can be implemented by governments, organizations, or […]

Definition of Rationalization Rationalization refers to the process of restructuring or reorganizing a company or business with the goal of improving efficiency and reducing costs. It involves eliminating redundancies, streamlining operations, and optimizing resource allocation. The aim is to make the organization more competitive and profitable in a rapidly changing […]