Top answers

Evaluate the use monetary policy to aid the economy's recovery just after a recession.

Paragraph 1 – define key terms and set the scene! (let the examiner know that you understand the question) Monetary policy is the manipulation of interest rates and money supply to influence levels of AD in ...
SR
Answered by Saifur R. • Economics tutor
4988 Views

Why might the Bank of England raise the bank rate if inflation rises above 2%?

The Bank of England (BoE) has a target for inflation of 2.0%. If inflation rises above 2% the BoE will therefore try and decrease inflation. Increasing the bank rate leads commercial banks to (usually) incre...
SF
Answered by Samuel F. • Economics tutor
2086 Views

Explain what a supply shock is, using a relevant example.

A supply shock happens when an event causes an economy's Short-Run Aggregate Supply (SRAS) curve to shift up or down the Aggregate Demand (AD) curve. In the case of a negative supply shock this shift causes ...
AV
Answered by Arthur V. • Economics tutor
5410 Views

What are negative externalities, and what policies can the government implement to reduce them?

Negative externalities are one of the main causes for market failure, meaning that the market is not operating at its optimal level and that there is a loss of social welfare. Negative externalities are one ...
CL
6880 Views

Define the term PPF and illustrate it.

A PPF (Production Possibility Frontier) is a curve showing the maximum combinations of two goods and services produced over a period of time, with all available resources used at maximum efficiency. (Diagram...
LG
Answered by Lochan G. • Economics tutor
2465 Views