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What is inflation and how does it come from supply or demand side?

Inflation - a situation in which the general level of prices in the economy is rising. Cause: money supply that grows too quickly. supply —> Prices and value of money are inversely related . I.e. money sh...
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Answered by Julia R. • Economics tutor
2971 Views

What is diminishing marginal utility?

Diminishing marginal utility- each additional (marginal) piece of pizza brings less utility than the previous one. Therefore extra utility (marginal utility) brought by each successive slice diminishes as yo...
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Answered by Julia R. • Economics tutor
3266 Views

What are supply side policies? (Including evaluation)

Definition : These are government policies that aim to increase productivity and shift the aggregate supply curve to the right. Privatisation Privatising inefficient state-owned industries gives a profit mot...
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Answered by Daniel S. • Economics tutor
4731 Views

Discuss whether a reduction in taxation will always increase a country’s economic growth rate.

Answers should discuss role of different forms of taxation e.g., income tax, corporation tax, VAT. Better answers will evaluate the potential limitations, and cases in which a reducation may or may not be ef...
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Answered by Andrew L. • Economics tutor
4677 Views

Comment on whether an increase in the rate of interest would reduce investment.

This question can be split up into 2 parts. What it is asking for firstly is an outline of what theory says should happen. As the question starts with the word comment, the second part will involve some eval...
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Answered by Henry T. • Economics tutor
3550 Views