Definition of Derived Demand Derived demand refers to the demand for a good or service that arises as a result of the demand for another good or service. In other words, the demand for one product or service leads to a demand for another product, causing an indirect effect on […]
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Deposit Multiplier
Definition of Deposit Multiplier The deposit multiplier is the amount by which the initial deposit into a bank is multiplied by the banking system to create the total money supply. It measures the effect of a change in bank reserves on the overall money supply in the economy. In other […]
Read moreDiscouraged Worker
Definition of Discouraged Worker Discouraged workers are individuals who are not included in the labor force statistics because they have given up on finding employment. That means they are not actively seeking employment, but they still want a job and are available to work. They typically drop out of the […]
Read moreDisequilibrium
Definition of Disequilibrium Disequilibrium is a condition in which the quantity demanded, and the quantity supplied of a good or service in a market are not equal. This mismatch leads to a surplus or shortage of the good or service, which can cause prices to adjust over time as market […]
Read moreDisinflation
Definition of Disinflation Disinflation refers to a period of slowing down in the rate of inflation, which means the general price level of goods and services in the economy is increasing, but at a slower pace than before. In simpler terms, it is a deceleration in the rate of inflation […]
Read moreDumping
Definition of Dumping Dumping is the practice of selling goods or services in a foreign market at a lower price than they are sold in the domestic market. This means that the export price is less than the cost of production. The objective of dumping is to gain a large […]
Read moreDemographics
Definition of Demographics Demographics refer to the statistical data that describes various characteristics of a population. These characteristics can include age, gender, income, education, ethnicity, and more. Demographic data is often used to analyze and understand the makeup of different segments of a population and to identify trends and patterns […]
Read moreEarned Income
Definition of Earned Income Earned income is income that is generated by an individual’s own effort, skills, and knowledge, typically through employment or by owning or operating a small business. That means it includes wages, salaries, bonuses, tips, and commissions derived from the work an individual undertakes. Earned income is […]
Read moreEconometrics
Definition of Econometrics Econometrics is the study of how economic theory, mathematical models, and statistical methods are used to analyze economic data. It is a branch of economics that focuses on making predictions and forecasts about the behavior of economy-wide systems, such as inflation, employment, and GDP. Econometrics provides a […]
Read moreDutch Disease
Definition of Dutch Disease Dutch Disease refers to the economic phenomenon where a significant increase in income from natural resources exports leads to a decline in the manufacturing and agricultural sectors of a country. The term was coined in reference to the Netherlands, which experienced a decline in its manufacturing […]
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