Frictional Unemployment Definition To define frictional unemployment more concisely: it is a form of unemployment that arises due to an…

Demand Side Policies Definition Demand Side Policies are attempts to increase or decrease aggregate demand to affect output, employment, and inflation.…

Business Cycle Definition The different phases and fluctuations that an economy goes through over time, such as periods of booms…

Absolute Advantage Definition According to Adam Smith, who is regarded as the father of modern economics, countries should only produce…

The Malthusian Theory of Population Definition The Malthusian Theory of Population is a theory of exponential population growth and arithmetic…

Cost Push Inflation Definition A fall or left shift in Aggregate Supply is the cause of Cost-Push Inflation. This shift can occur…

2020 has been a year for the books. Between a global pandemic, a recession, and social movements rippling through societies,…

Economies of Scale Definition Economies of scale are achieved when increasing the scale of production decreases long-term average costs. In…

Trading Bloc Definition A trading bloc is a formal agreement between two or more regional countries that remove trade barriers…

Free Market Economy Definition A free market economy is a type of economy that promotes the production and sale of…