#aggregate demand

1.GDP is a key concept in Macroeconomics.  Please review the material covered in the topic called Measuring Domestic Output and National Income.             a.What is the definition of GDP?              b.Tell me the level of real GDPand real GDP per capitafor the past 5 yearsand tell me how you think we were doing in each of those years.             c.Go to topic called Economic Growth and…

Economic contraction likely to continue in Q2: RBI

MUMBAI: The Reserve Bank of India on Tuesday said the contraction in economic activity was likely to continue in the second quarter of the current fiscal as upticks witnessed in May and June appears to have lost strength ifollowing re-imposition of lockdowns to contain the coronavirus pandemic.

The government imposed a nation-wide lockdown on March 25 to combat the pandemic. The lockdown was…

Crowding-Out Effect And Why It Matters

The crowding-out effect occurs when public sector spending reduces spending in the private sector.

Breaking down the crowing out effect

The crowding-out effect describes the way government spending reduces private spending.

Public sector spending is accommodated by increasing taxes or the level of borrowing itself. This reduces available capital and decreases consumer confidence.

In the long…

[HDquiz quiz = “90”]

So Nigeria has just recently increased the VAT rate to 7.5% and initial sentiment from the citizenry was that the government was becoming more anti-business.

However, there were a lot more changes prescribed in the Finance Bill than just the change in VAT (which will be covered in further posts) That were in support of business activities, particularly focused on startups and new ventures.