Difference Between Leakages and Injections

Leakages Vs Injections In an economy, there can be expansion or contraction of the circular flow of income wherein the former refers to the increase in the income level/output level in the economy. Whereas the latter implies the fall in the level of income or output. The expansion of circular flow is due to injections, […]

Difference Between Inflationary Gap and Deflationary Gap

Inflationary Gap Vs Deflationary Gap At full employment level, the equilibrium level of an economy is defined, in which the level of demand is equivalent to the level of income. When the aggregate demand is in excess of the productive potential of the economy, the gap is said to be inflationary, whereas the variance between […]

Imperfect Competition

What is Imperfect Competition? Imperfect Competition can be described as a practical market setting, where the individual sellers can influence the price of the offerings. However, it does not imply that they have full-fledged control over the prices and the absence of rivals, but the control is possible up to a certain extent. Further, the […]