Archives: Terms

Definition of Recovery Recovery in economics refers to the phase in the business cycle following a recession, during which the economy regains and exceeds levels of output, employment, and income that were present before the downturn. During a recovery, economic indicators such as Gross Domestic Product (GDP), employment rates, and […]

Definition of Recommended Retail Price (RRP) Recommended Retail Price (RRP) is the price that a manufacturer suggests that a retailer should charge for a product. It is often used as a benchmark for pricing across different retail outlets and can help ensure consistency in pricing. While retailers are not legally […]

Definition of Reciprocity Reciprocity refers to the practice of exchanging goods, services, privileges, or actions with others where an act by one party triggers an equivalent response from another. In economics, reciprocity plays a critical role in fostering cooperative behavior and mutual benefit among individuals, businesses, and nations. Reciprocity can […]

Definition of Receivership Receivership is a legal process in which a court appoints a receiver to manage the property, business, or assets of a company or entity that is in financial distress. This appointment helps to protect the assets, prevent their dissipation, and ensure that creditors are repaid to the […]

Definition of Realignment of Exchange Rates The realignment of exchange rates refers to the process of adjusting the value of a country’s currency to reflect its true economic situation. This adjustment is often necessary when there are significant disparities between a currency’s market value and its perceived value, often due […]

Definition of Real Wages Real wages refer to the wages adjusted for inflation, representing the purchasing power of an individual’s income. In simple terms, while nominal wages indicate the amount of money received without considering inflation, real wages reflect the true value of that money in terms of what goods […]

Definition of Real Wage Resistance Real wage resistance refers to the reluctance of workers to accept decreases in their real wages, even in times of economic downturn or when market conditions warrant such decreases. Real wages represent the purchasing power of nominal wages, adjusted for inflation. When inflation rises but […]

Definition of Real Variable A real variable is an economic variable that has been adjusted for changes in the price level, such as inflation or deflation, reflecting the true value in constant terms. Unlike nominal variables, which are measured in current prices and can be influenced by changing price levels, […]

Definition of Real Terms Real terms refer to the value of money after adjusting for inflation. Essentially, it’s a way of measuring the purchasing power of money over time, removing the effects that inflation has on the nominal value of goods and services. This concept is crucial in economics and […]

Definition of Real National Income Real National Income is an economic metric that measures the total value of all goods and services produced by a country, adjusted for inflation. It provides an accurate reflection of an economy’s true growth by eliminating the distorting effects of price level changes over time. […]