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Discuss the effectiveness of fiscal policy to counter recession

Fiscal policy is the use of taxation and government spending to achieve macroeconomic objectives. Expansionary fiscal policies such as cuts in income tax will increase the disposable income of consumers, inc...
CV
Answered by Carlo V. • Economics tutor
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What is the demand curve?

The demand curve illustrates the relationship between the price of a good or service and the quantity demanded by consumers at any given price level. The demand curve has a negative gradient (downward slopin...
RC
Answered by Robert C. • Economics tutor
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What is supernormal profit?

When a firm is making a supernormal profit, this refers to a profit level at which new firms are willing to enter the market. This suggests that the firms currently in the market are making a profit level ab...
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Answered by Chris B. • Economics tutor
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What's the difference between an elastic good and an inelastic good?

An elastic good is a good that has a price elasticity of demand that is greater than one. This means that the demand for the good will change significantly if the price changes. An example of such is coke-a-...
HK
Answered by Hana K. • Economics tutor
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What is meant by the term 'opportunity cost'

This simply means, 'the next best alternative foregone'. We can explain this by saying if I only had £5 to buy lunch, I could either buy a sandwich or half a pizza. The opportunity cost of me buying a sandwi...
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Answered by KATIE C. • Economics tutor
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