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Monetarists believe that prices and money wages are flexible and can adjust quickly, meaning that the real wage is at the right level to achieve long run equilibrium in the labour market. All unemployment...
The Gini Coefficient measures the area between the Lorenz curve and the line of absoluate equality in an economy. The bigger the Gini Coefficient, the greater the inequality in a single country. Fiscal po...
The Phillips curve shows the inverse relationship between unemployment a...
Economies of scale and scope
The concept of economies of scale were introduced by Adam Smith as a part of his famous works on division of labour. The main idea behind i...
These two simple acronyms will help you remember the effects of changes in the exchange rate on imports and exports: Strong Pound Imports Cheap Exports Dear<...
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