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What is the difference between deflation and falling inflation?

Deflation is the state of an economy where prices are falling, representing a rise in the real value of money over time. If inflation is falling that means that the rate at which prices increase is reducing ...
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Answered by Charles G. • Economics tutor
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Difference between Comparative advantage and Absolute advantage

A comparative advantage is when a country can produce a good at a lower opportunity cost than another country. For example, if the UK can produce 10 pharmaceuticals or 5 cars, whereas Belgium can produce 4 c...
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Answered by Conor T. • Economics tutor
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Please identify and explain the 2 main factors that cause the downward sloping demand curve.

The first main factor that explains the negative relationship between price and quantity where demand is concerned is the income affect: As the price of a good or service rises, it takes up a larger proporti...
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Answered by Bethan C. • Economics tutor
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Using a demand and supply diagram, explain how an increase in taxes on domestic fuel will affect the domestic fuel market

(draw demand and supply diagram showing a shift to the left of the supply curve and a new equilibrium) explanation:indirect tax increases the cost to the producer this means they can no longer sell the same ...
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Answered by Sarah R. • Economics tutor
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Explain the 2 ways in which a reduction in interest rates can change consumption in the aggregate demand model of the economy.

Consumption - a reduction in interest rates means that the cost of borrowing money for consumers is lower. This means that consumers demand more money in order to consume. Large purchases become relatively c...
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Answered by James Y. • Economics tutor
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