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1. Government has to give out more employment benefits (increasing expenses and decreasing funding in other sectors in the economy 2)Government may see falling tax revenue due to falling average income...

The manipulation of the level of interest rates is controlled by the government's monetary policy to influence the aggregate demand. A fall in interest rate would reduce the cost of borrowing, thus encou...

The price elasticity of demand tells you how sensitive consumers are to a change in the price of a good. Therefore the more sensitive (elastic) the demand is, the more the tax will effect the demand. So, ...

Normally in order to understand equilibrium, we must first think of the concepts of supply and demand. In a market in order to reach equality between two variables or equilibrium in economic terms, we ...

'Price Elasticity of Demand' essentially refers to the responsiveness of Demand with respect to price. It can be understood as the proportional change in demand after a change in price. To calculate th...