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The price level will increase, because foreign goods will be more expensive and this will effect prices overall.

Perfect competition is a market structure dominated by many firms. No individual firm is capable of affecting the market supply curve, so one firm cannot affect the market price; the firms are price take...

When the exchange rate EU/US goes up, (1/5 becomes 1/10) the euro becomes worth less. If they euro is worth less, European products become cheaper to the US, potentially stimulating exports, while US prod...

A tax can be indirect, imposed by the government on goods and services (e.g VAT) or direct (e.g. income tax). There are 2 types of indirect taxes: specific tax, which is a set amount and ad valorem, a per...

The main policies governments can employ to achieve economic growth are demand and supply side policies. Demand side policies can increase aggregate demand in an economy during a period of recession. If t...