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Monopolies happen when a single firm or a single producer is the only supplier in the economy. It is thus able to fix the price of its products/ goods and/or choose the quantity that will maximise its pro...

The law of demand states that: 'as a product's price falls, the quantity demanded of the product will rise, ceteris paribus'. In other words, price and quantity demanded of a good are inversely related. T...

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The economy is initially in equilibrium where LRAS = AD = SRAS. Real output is Yf and the average price level is P. If there is a decrease in government spending i...

Economic growth is an increase in the sum values of all goods and services produced in an economy over a year. To increase this the government may undertake expansionary fiscal policy, by raising spending...

Interest rates are one major determinant of household consumption. The level at which interest rates are set will affect consumer decisions on borrowing and saving, and therefore consumption. If interest ...