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Demand pull inflation:
1. Contractionary monetary policy (Keynesian)
a. One positive: Economy moves closer to full employment level of output, central bank can adjust intere...
Economics is all about models involving assumptions and diagrams. So whenever you're answering a question, you must identify the assumptions relating to it, draw a diagram illustrating your argument an...
- Barriers to entry, for example patents, restrict the number of competitors in a market. They may be deliberate, e.g. patents, or inherent in the good, e.g. water. Where they are inehrent, a 'natural...
Define demand as the willingness and ability of a consumer to pay a certain price for a good or service at a specific period in time.
Explain the meaning of law of demand, where, ceteris...
Interest rates on bonds increase, leading tp increased costs of borrowing. Leads to
a) fall in business investment, which reduces both AD and LRAS (i.e fall in economic growth)
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