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An increase of a National Minimum Wage (NMW) increases living standards of the population by increasing their spending power. This, will cause demand for consumer products to increase, causing GDP to incr...
In this case, I would draw out two diagrams of a good with elastic demand and another good with inelastic demand.Price elasticity of demand is a measure to show the responsiveness of the quantity demand i...
A negative externality is a cost that is suffered by a third party as a consequence of an economic transaction. In a transaction, the producer and consumer are the first and second parties, and third part...
(the answer to this question would be assissted by the use of diagrams) Movements along the demand curve are caused by changes in price. A change in price will move to a new point on the demand curve. For...
Higher wages may increase consumer expenditure increasing aggregate demand - diagram showing aggregate demand increasing. This causes demand-pull inflation if demand rises by more than money supply and t...
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