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This simply means, 'the next best alternative foregone'. We can explain this by saying if I only had £5 to buy lunch, I could either buy a sandwich or half a pizza. The opportunity cost of me buying a san...
A particular economy can go through many downturns and upturns in what is called the business cycle. A central bank may wish to dampen these fluctuations by using one of two tools. The first one is changi...
The Philips curve charts unemployment against the change in rate of inflation. There is an inverse relationship between the two, therefore when unemployment rises, the change in rate of inflation falls. C...
The two policies the government can employ to influence economic growth and inflation are MONETARY and FISCAL policy.
Monetary policy: Change the interest rate and affecting the supply of...
Consumer consumption, Government Spending, Investment, Exports and Imports
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