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A budget deficit arises when government spending in terms of transfer payments,capital expenditure and and current expenditure exceeds government revenue mainly from taxes. This is, when government spendi...

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...

William J Baumol’s theory of contestable markets (1982) holds that there are markets served by a small number of firms, which are nevertheless characterized by competitive equilibria, and therefore, desir...

First, the key terms in the question should be defined; perfect competition, monopoly, and long run. This should be done in the first paragraph, to pick up to easy band 1 marks.

One could structure...

First of you must define the terms listed in the question throughly. The Economic Problem, in its most simple form, is that there are unlimited wants and limited resources/factors of production. The Econo...