Absolute Income Hypothesis
by The absolute income hypothesis (AIH) is a theory of consumption that proposes that an individual’s …
Tag: ERP Applications
Aggregate expenditure
Aggregate expenditure is a macroeconomic concept that refers to the total amount of spending in …
Classical Macroeconomic Models
Classical macroeconomic models are theoretical frameworks used to explain the behavior of the economy as …
Concepts of propensities of Consumption and Saving
The concepts of the propensities of consumption and saving are central to understanding how households …
Consumption Function
The consumption function is a concept in economics that describes the relationship between a household’s …
Consumption Puzzle
The Consumption Puzzle refers to a phenomenon in macroeconomics where changes in income do not …
Investment Function, Types
The investment function is a concept in macroeconomics that describes the relationship between investment spending …
Marginal Efficiency of Capital (MEC)
Marginal Efficiency of Capital (MEC) is a concept used in economics to describe the expected …
Marginal Efficiency of Investment (MEI)
Marginal Efficiency of Investment (MEI) is a concept that is related to the Marginal Efficiency …
Permanent Consumption Hypothesis
The Permanent Income Hypothesis (PIH) is a theory in macroeconomics that suggests that people base …