Adjustment costs refer to the expenses incurred by an economic agent when making changes to their controlled variables to reach optimal levels.
An in-depth exploration of index-linked variables, securities, and incomes that adjust based on various indices to protect against inflation and economic volatility.
A comprehensive guide on risk management, exploring its processes, types, importance, and applications in various sectors such as private, public, banking, and finance.
An in-depth look at the concept of the short run in both microeconomics and macroeconomics, examining its historical context, applications, and importance.
An exploration of the economic concept of stickiness, explaining why certain variables, notably prices and wages, resist changes despite shifts in supply and demand. Factors such as long-term contracts and menu costs contribute to this phenomenon.
A variable is a fundamental concept in mathematics and economics, representing a quantity liable to change. It can measure prices, interest rates, income levels, quantities of goods, and more. Variables can be classified as exogenous or endogenous based on their origin.
Detailed exploration of Indexation – the process of adjusting economic variables based on specific indicators, typically to inflation. Includes examples such as Federal income taxes and prevention of bracket creep.
An in-depth exploration of stock and flow variables in economics, their definitions, significance, and applications.
