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Discuss the view that falling unemployment will inevitably lead to trade-offs with other macroeconomic policy objectives

Phillips explains that there is a trade off between inflation and unemployment. When there are high levels of demand in the economy, firms hire workers to be able to meet this demand, leading to low levels o...
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Answered by Sophie K. • Economics tutor
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How does a natural monopoly differ from the more general monopoly market structure we're used to?

A natural monopoly is a subset of the monopoly market structure that we looked at previously. It's a special case, where a monopoly market structure can be more efficient for society (than opposed to the per...
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Answered by Samuel H. • Economics tutor
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What are the economic assumptions for a perfectly competitive market?

There are four fundamental assumptions which must all be satisfied: There must be many buyers and sellers in the market and they all have to be price takers. That is to say, none of them are large enough to ...
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Answered by Peter W. • Economics tutor
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Explain price elasticity of demand and how firms can exploit this.

Price elasticity of demand (PED) is defined as % change in quantity demanded / % change in price. This is also the slope of the demand curve. If PED is less than 1, we say that the demand for the good is ine...
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Assess the impacts of inflation on the UK economy (8 marks)

Inflation is a sustained increase in the general price level of the UK economy. Due to inflation, it means that the value of money decreases, so each pound can buy less. This means that the real value of deb...
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Answered by Aliyah K. • Economics tutor
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