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A production possibility frontier, or PPF, is a line showing the maximum level of output in an economy of one good or group of goods in terms of another. At any point on this line, the economy is operatin...

A cut in the base rate (rate at which the central bank lends to commercial banks) generally increases growth, and an increase in rates reduces growth. This is due to several factors:

1. Impa...

Perfect substitute could be anything like: Pepsi and Coca-Cola, PG Tips and Typhoo etc. Imperfect substitute can be things like: Tea and Coffee, Beer and Wine.

When the interest rate is high in a country it encourages investors to convert their money, e.g. into pounds, and invest their money in the country. The price change can be traced back to basic supply and...

The demand curve shows how different prices of a commodity affect the quantiy demanded by consumers.Price is always show on the y-axis (vertical) and quantity on the x-axis (horizontal). These two variabl...