The Great Depression: Causes and Recovery Attempts
The Great Depression
Causes of the Depression
- Overproduction (Industrial): Purchasing power was insufficient to absorb increased production before 1929.
- Liquidity Crisis: A lack of monetary resources to address the payment of debts, causing a cascade of defaults that resulted in the closure of industries and banks. The desire to sell goods at any price forced down prices (deflation).
- Fall of Consumption: Caused by unemployment, reduced purchasing power, fear of dismissal, falling agricultural prices,
Business Finance: Funding Startups & Growth
Money in businesses is needed for: starting up a business (the finance needed to pay all the essential fixed and current assets before it can begin trading), expanding a business, and supporting a business in difficulties (it might need to pay for new machinery to become more efficient, and a firm with negative cash flow may need to cover short-term expenses).
Revenue Expenditure
Revenue expenditure is money spent on day-to-day expenses that don’t involve the purchase of long-term assets.
Capital Expenditure
Capital
Understanding Macroeconomics: National Income and Policy
Macroeconomics: An Overview
Macroeconomics focuses on the overall performance of an economic system. It aims to study economic reality globally, considering variables such as:
- Total output of an economy (production)
- Employment
- Investment
- Consumption
- The general price level
Macroeconomics provides a simplified view of how the economy functions as a whole.
Macroeconomic Policy
Macroeconomics analyzes economic performance by focusing on key variables to set specific goals and design macroeconomic policy. Macroeconomic
Read MoreEconomics of Healthcare: Key Concepts and Applications
Old Exams: Healthcare Economics
The government passes a tax that results in an increase in the price of cigarettes from $4 a pack to $5. Since the price elasticity of demand for cigarettes is between -0.3 to -0.7, government revenue will increase.
Suppose the price elasticity of demand for cigarettes is -.45, on average. A 1 percent increase in price will result in a 0.45 percent decrease in the quantity of cigarettes demanded.
Utility Maximization
Mainstream economic theory hypothesizes that individuals
Read MoreFinancial Acronyms, Synonyms, Antonyms, and Terms
Financial Acronyms
- BSc: Bachelor of Science
- BA: Bachelor of Arts
- MA: Master of Arts
- MSc: Master of Science
- MBA: Master of Business Administration
- PhD: Doctor of Philosophy
- IMF: International Monetary Fund
- WTO: World Trade Organization
- WBG: World Bank Group
- OECD: Organization for Economic Cooperation and Development
- ISA: Individual Saving Account
- IPO: Initial Public Offering
- GATT: General Agreement on Tariffs and Trade
- ECB: European Central Bank
- CDO: Collateralized Debt Obligation
- EEC: European Economic Community
- BIC:
Minimum Insertion Income & Active Inclusion Aid in Spain
Minimum Insertion Income (RMI)
The Minimum Insertion Income (RMI) is an economic service that ensures individuals have the means to meet the basic needs of life when they cannot obtain a job, pension, or social protection benefits. Each Autonomous Community determines its own rules, but the characteristics of the RMI and the requirements to apply are similar.
Requirements for RMI
- Census in the Autonomous Communities and continuous residence in the year preceding the application.
- Must be aged between