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Market failure is defined as a misallocation of resources, and essentially entails that market forces are not operating effectively through the price mechanism to distribute goods and services from suppli...

As an oligopoly is when a group of firms have the majority of the market share, they gain price-setting power. One policy they can use is limit-pricing. In lowering the price of their goods, oligopolies a...

Keynesian economists would argue if an economy incorporates an expansionary fiscal stance (where by an increase in government spending or a reduction in income tax occurs) will help elevate real GDP. Rea...

An increase in production costs will result in an increase in the equilibrium price. This is because the increase in production cost means that firms will be less willing to supply and therefore there wil...

Fiscal policy is concerned with the manipulation of government income and government expenditure to influence the level of aggregate demand in an economy. When adopting fiscal policy measures, a governme...