Economics is Really Crazy Matter.

Economics is related to money, production, price, market, consumption, employment, saving, etc. All related factors should be run in balance for a healthy economy. If people have more money, they buy more goods, then demands would be increased, and the price of products also increased, then problems are created. If people have less money they can’t buy products, then sales, productions and employment are decreased, again problems are created. If the employment rate is high, the salary of employees would be increased due to increased demand for employees, then the price of all products is increased, here also problems are created. If the employment rate is low,  then consumption, sales and productions are decreased, here also problems are created. If the interest rate increased, production would be decreased, the cost of production would be increased and consumption would be decreased, liquidity of the bank would be increased, so many problems arise. If the interest rate decreases, the bank should face a liquidity problem, the demand for products would be increased, and the price of products also increased, so many economic problems arise. So that economics is the really crazy matter, it should be run through the equilibrium point. We can read in economics everywhere economists described and used a lot about equilibrium point, which is fixed by demand and supply. Where demand and supply exactly equal in one point, that point is called the equilibrium point. For good economic progress, all economic activities should be running through equilibrium point otherwise so many problems are created.

Comments