Government Spending
What is Government Spending? Government spending refers to money spent by the public sector on the acquisition of goods and provision of services such as education, healthcare, social protection, and defense. In national income accounting, when the government acquires goods and services for current use to directly satisfy the individual or collective needs and requirements of...
Laissez-faire
What is Laissez-faire? Laissez-faire is a French phrase that translates to “allow to do.” It refers to a political ideology that rejects the practice of government intervention in an economy. Further, the state is seen as an obstacle to economic growth and development. The term originated in the 18th century during the Industrial Revolution. French...
Real Economy
What is the Real Economy? The real economy refers to all real or non-financial elements of an economy. An economy can be solely described using just real variables. A barter economy is an example of an economy with no financial elements. All goods and services are purely represented in real terms. A barter economy does...
Consumer Price Index (CPI)
What is the Consumer Price Index (CPI)? The Consumer Price Index (CPI) is a measure of the aggregate price level in an economy. The CPI consists of a bundle of commonly purchased goods and services. The CPI measures the changes in the purchasing power of a country’s currency, and the price level of a basket...
OECD
What is the OECD (Organization for Economic Cooperation and Development)? The OECD, or Organization for Economic Cooperation and Development, is an international organization that promotes policy coordination and economic freedom among developed nations. The OECD was derived from the Organization for European Economic Cooperation (OEEC) that was established in 1948 to monitor American and Canadian...
