What is Gross Domestic Product? Gross Domestic Product (GDP) refers to the total value of all goods and services produced within a country. It confines these goods and services to a specific country’s borders within a particular period. Usually, a country’s GDP is an indicator of how well its economy …

What is Purchasing Power Parity? Purchase power parity refers to an economic theory used to compare the currencies of different countries. It does so by using a “basket of goods” approach. In other words, it compares several currencies by looking at the purchase price of those currencies for the purchase …

Monetary and fiscal policy are tools that can influence economic activity, whether it is to encourage or curb growth. Both fiscal and monetary policy can help stabilize the economy in times of a crisis or stimulate growth when the economy becomes stagnant. However, there are some differences between them. What …

In economics, there are two terms that closely relate to each other. These include inflation and money supply. The money supply in a country can have a direct effect on its rate of inflation. However, it is necessary to understand what each of these is before discussing their relationship. What …

What is Inflation? Inflation is a topic used in economics and other related fields. It describes the decline of the purchasing power of a given currency over time. Practically, most currencies around the world suffer inflation after a specific period of time. However, some currencies may also experience an increase …

Inflation is a topic that comes from economics but relates to several other fields as well. Its definition also comes from economics. However, its definition may differ elsewhere, while the fundamental concept is the same. Inflation is quantifiable and measurable based on several indexes. However, before understanding how to calculate …

Inflation and interest rates are two topics that come up often in economics. Both of these relate to the macroeconomics area of economics. While both play a crucial role in a country’s economy, there are also often interrelated. However, before understanding their relationship, it is critical to understand what each …

What is Hypothesis Testing? Hypothesis testing is a concept in statistics in which analysts test an assumption regarding a population parameter. It is a method used in statistical inference. The use of hypothesis testing is useful when determining if a statement regarding a population parameter is statistically significant. Overall, it …