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Assess the likely macroeconomic effects of an increase in house prices on the UK economy

An increase in house prices is likely to cause a wealth effect in the UK economy. The wealth effect is defined as an increase in consumer expenditure when their portfolio performance is high. In this case, h...
DP
Answered by Dilan P. • Economics tutor
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The Government would like to improve the well-being of the population by encouraging people to adopt a healthy diet. Using your knowledge of both traditional economic theory and behavioural economics, assess alternative policies that the Government might

(Intro) Definitions of behavioural and traditional and distinctions. (PARA 1)A governmental approach would involve the use of pricing and quantities to encourage more consumption of healthier goods, they may...
AR
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What is the relationship between income elasticity of demand and a normal and inferior good?

Firstly, we must define what income elasticity of demand means. This is the responsiveness of the quantity demanded of a good to a change in income. A normal good is characterised by a positive income elasti...
CB
Answered by Cameron B. • Economics tutor
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Explain the difference between fiscal policy and monetary policy.

Firstly, let's define each Government demand side policy. Fiscal policy is the use of taxation and Government spending to control aggregate demand and hence growth. Monetary policy is the use of interest rat...
EL
Answered by Ella L. • Economics tutor
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Why cannot firms in perfect competition sustain supernormal profits in the long run?

Define key terms in the question:-The model of Perfect Competition describes a market where there is high degree of competition, with many buyers and sellers in the market.- Supernormal profit is the excess ...
MF
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