If Businessman move out from China then what will be next country?

In 2019 China exported a whopping $2.5 trillion worth of goods. It took an economy of $14.4 trillion and 220 million workers to be able to produce so many goods (note China’s total workforce is around 807 million people). Now look at the table below of the top 10 economies of the world. Only the […]

Long Run

How a Long Run Works A long run is a time period during which a manufacturer or producer is flexible in its production decisions. Businesses can either expand or reduce production capacity or enter or exit an industry based on expected profits. Firms examining a long run understand that they cannot alter levels of production in order […]

Contraction Monetary Policy to manage Inflation

When aggregate demands rises sharply due to large consumption and investment expenditure or more importantly, due to the large increase in government expenditure relative to its revenue resulting in huge budge deficits, a demand-pull inflation occurs in the economy. Besides, when there is too much creation of money for one reason or the other, it […]

Expansionary Monetary Policy to manage Recession or Depression

When the economy is faced with recession or involuntary cyclical unemployment, which comes due to fall in aggregate demand, the central bank intervenes to cure such a situation. Central bank takes steps to expand the money supply in the economy and lower the rate of interest with a view to increase the aggregate demand that […]