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Economics

In this category you will find information on economics, both in terms of macroeconomics and microeconomics. Economics is an important basis for the understanding of financial markets and financial instruments.

Absolute advantage | Trade theory

Absolute advantage is a trade theory developed by Adam Smith. Adam Smith argued that our country should purchase a product from another country if that country have an absolute advantage over our coun ...

AD-AS models

AD-AS models are models for determining the gross domestic product and the price level simultaneously in a country. In the AD-AS model, there are two axes, one vertical labeled as CPI and a horizontal ...

Adverse selection | Market failure

Adverse selection is a market failure that is both an information problem and an insurance problem. Adverse selection means that a person with an information advantage is utilizing this at someone els ...

Aggregate demand (AD)

Aggregate demand is described in an AD-AS model using an AD curve. The AD curve is a straight line with a negative slope, it describes the relationship between demand and the price level when all ot ...

Aggregate supply (AS)

Aggregate supply is described in an AD-AS model by the AS curve. The AS-curve is a straight line with a positive slope that describes the relationship between supply and price level when all other f ...

Appreciation

Appreciation is a term that is used when a currency is strengthened versus another currency when it is floating exchange rates between the countries. ...

Balance of payments

The balance of payments is a table of all foreign transactions in a year. The balance of payments shall be 0 or as close to zero as possible, if this is not the case, it is something wrong with the st ...

Balance of trade

The balance of trade is included in the balance of payments, the balance of trade is established by the central bank. The balance of trade is the statistics of trade in goods, trade in services, facto ...

Barter equation

The barter equation is an equation that explains the relationship between money supply and price levels. ...

Bretton Woods system

The Bretton Woods system was a system of currency exchange rates that existed from 1951 until 1973. The Bretton Woods system were an exchange rate system of fixed exchange rates. ...

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