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Progressive taxation refers to a tax becoming progressively more substantial as an individuals income rises. This means as a person earns more income they are taxed more on the increase in income that the...
Food is relatively price inelastic as it is considered a necessity which means that everyone needs it. If price were to rise there wouldn't be any change in consumption as people require it to live so the...
The natural rate of unemployment is defined as the rate of unemployment that exists when the labour market is in equilibrium. In figure 1 we can see a graphical explanation of this concept; the lateral di...
There are three main types of unemployment: real-wage (classical), demand-deficient (cyclical), and equilibrium unemployment (which includes seasonal, frictional, and structural unemployment). Real wage u...
Aggregate demand is the total demand in the economy. It is calculated as C+I+G+(X-M), where C is consumption, I is investment, G is government spending, X is exports and M is imports. The value of all is ...
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