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Define what investment is: spending by firms on capital goods (eg. machinery). Then analyse the effect of the change in the question: Investment is component of the equation Y=C+I+G+NXIncreasing investmen...

The Phillips curve shows the trade-off that must be made between inflation and unemployment . There is an inverse relationship between the two variables, with lower unemployment rates corresponding to hi...

Firstly, deflation can be defined as a persistent decrease in the general level of prices. An example would be Japan in the 1990's.There can be "good"deflation which occurs when Long Run Aggrega...

Micro:firms lower revenue, lower profits, leave the market, shut-down point, supply falls. EVAL: supply falls offsets lower prices.lower wages as less spending means less derived demand for labour and so ...

Both models of the different ways markets can be defined are both ends of the spectrum of how markets operate.The key differences between perfectly competitive markets and monopolies are found in the diff...