Financial Crisis of 2008 and 2009

In 2008 the United States went through a Financial crisis. Many of these events were said to be the reflections of 1930’s great depression that brought fear to many individuals considering it’s a severe downturn in economic transactions and rapid rise in unemployment....

Price Index

Price Index A Price Index is a measure of the average level of prices. So when we see a news on the TV that “Inflation is rising”, they are really reporting the movement of a Price Index. A price index is a weighted average of the price of a basket of goods and...

Business Cycle

One important factor of business fluctuations is changes to aggregate Demand. Like I said before, any changes made to consumption, investment or government expenditure will change aggregate demand which as obvious will have fluctuations in Business cycle. Though we...

Aggregate Demand And Its Downward Slope

Macroeconomics has a lot of diverse concepts. One of these is the Aggregate Demand. If you have gone through microeconomics, you must have came across the very first concept of the simplified Demand for  a single product. For a single product we get to see its...