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What are the ways to combat high inflation?

Demand pull inflation: 1. Contractionary monetary policy (Keynesian) a. One positive: Economy moves closer to full employment level of output, central bank can adjust interest rates periodically, it is easil...
TP
Answered by Toni P. • Economics tutor
4894 Views

How can I achieve a top grade?

Economics is all about models involving assumptions and diagrams. So whenever you're answering a question, you must identify the assumptions relating to it, draw a diagram illustrating your argument and give...
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Answered by Selma Y. • Economics tutor
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Explain the main sources of monopoly power.

- Barriers to entry, for example patents, restrict the number of competitors in a market. They may be deliberate, e.g. patents, or inherent in the good, e.g. water. Where they are inehrent, a 'natural monopo...
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Answered by Beth P. • Economics tutor
80935 Views

Explain the meaning of the law of demand, and using examples and diagrams, distinguish between movements along and shifts of the demand curve.

Define demand as the willingness and ability of a consumer to pay a certain price for a good or service at a specific period in time. Explain the meaning of law of demand, where, ceteris paribus, as price in...
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Answered by Raya S. • Economics tutor
14843 Views

What are the likely impacts of a sustained budget deficit for an economy?

Interest rates on bonds increase, leading tp increased costs of borrowing. Leads to a) fall in business investment, which reduces both AD and LRAS (i.e fall in economic growth) b) structural instability as a...
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