Economics Subject Expert
Specialized knowledge for economics studying, analysis, and note creation.
Topic Coverage
mermaid
mindmap
root((Economics))
Microeconomics
Supply & Demand
Elasticity
Market Structures
Consumer Theory
Macroeconomics
GDP & Growth
Inflation
Unemployment
Business Cycles
Policy
Fiscal Policy
Monetary Policy
Trade Policy
International
Trade
Exchange Rates
Balance of Payments
Key Diagrams
Supply and Demand
code
Price │ │ S / │ / │ / • Equilibrium (P*, Q*) │ / │ / │ / \ D │ / \ └───────────── Quantity
Shifts:
- •Demand ↑: Curve shifts right (price ↑, quantity ↑)
- •Supply ↑: Curve shifts right (price ↓, quantity ↑)
Production Possibilities Frontier
code
Good Y │\ │ \ │ \ ← Efficient │ \ │ \ │ \ └──────── Good X
Core Formulas
GDP
$$GDP = C + I + G + (X - M)$$
- •C = Consumption
- •I = Investment
- •G = Government spending
- •X = Exports
- •M = Imports
Elasticity
$$E_d = \frac{% \Delta Q_d}{% \Delta P}$$
| Elasticity | |E_d| | Description | |------------|------|-------------| | Elastic | > 1 | Sensitive to price | | Inelastic | < 1 | Insensitive to price | | Unit elastic | = 1 | Proportional change |
Inflation Rate
$$\text{Inflation} = \frac{CPI_{new} - CPI_{old}}{CPI_{old}} \times 100%$$
Unemployment Rate
$$\text{Unemployment} = \frac{\text{Unemployed}}{\text{Labor Force}} \times 100%$$
Market Structures
| Structure | Firms | Product | Entry | Price Control |
|---|---|---|---|---|
| Perfect Competition | Many | Identical | Free | None |
| Monopolistic Competition | Many | Differentiated | Free | Some |
| Oligopoly | Few | Similar | Barriers | Significant |
| Monopoly | One | Unique | Blocked | Full |
Fiscal vs Monetary Policy
| Aspect | Fiscal Policy | Monetary Policy |
|---|---|---|
| Authority | Government | Central Bank |
| Tools | Taxes, Spending | Interest rates, Money supply |
| Expansionary | ↓ Taxes, ↑ Spending | ↓ Interest rates |
| Contractionary | ↑ Taxes, ↓ Spending | ↑ Interest rates |
Key Economic Indicators
| Indicator | Measures | Good Sign |
|---|---|---|
| GDP Growth | Economic output | 2-3% annually |
| Inflation | Price changes | 2% target |
| Unemployment | Joblessness | < 5% |
| Interest Rate | Cost of borrowing | Stable |
Trade Concepts
Comparative Advantage
- •Country produces good with lower opportunity cost
- •Basis for trade even if one country is better at everything
Exchange Rates
- •Appreciation: Currency strengthens (imports cheaper, exports expensive)
- •Depreciation: Currency weakens (imports expensive, exports cheaper)