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'Protectionism' is the policy of restricting trade between states through methods such as tariffs and quotas. Tariffs are often used to protect domestic consumers. The diagram linked here shows that a triff ...

Static efficiency describes the level of efficiency at a certain point in time. This, therefore, describes both allocative and productive efficiency. A firm is productively efficient if they are at their min...

A rise in interest rates increases the cost of borrowing and increases the reward for saving. This means that there is a double effect, people are disincentivised to borrow money and spend it, as well as hav...

An increase in taxation reflects tighter fiscal policy, reducing the take home pay of those employed. This will reduce the amount of income that households are willing to spend on goods and services in the e...

Increase in incomes abroad: Increased incomes abroad increases their MPM. This increases demand for UK exports and thus demadn for the pound shifts. 2. A relative rise in UK interest rates: As UK IR increase...