What is the Balance of Trade? Definition: Balance of Trade is simply the difference between the number of a country’s exports and imports and exports over a given period. It is a measure of valuing a country’s balance of payments and often used to measure the strength of a country’s economy. Countries engage in the
What is Contractionary Monetary Policy? Definition: A contractionary monetary policy is a governmental economic effort to fight inflation by decreasing the money supply. When an economy is under an attack of inflation, the central bank must make the appropriate move contain it. In such a scenario, it applies the Contractionary Monetary Policy. The presence of
What is Change in Demand? Definition: Change in demand is the shift in the demand curve, either up or down, brought about by a change in a determinant of demand, with price remaining constant. The shift in demand is more large-scale and has far-reaching implications compared to change in demand quantity. Understanding Change in Demand