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Explain, with the help of a diagram, the relationship between unemployment and the rate of inflation.

Diagram: https://i.imgur.com/LCMuewo.jpg Unemployment occurs when someone is actively looking for a job in the labour market but cannot find one, whereas inflation is measured by a percentage in the annual p...
WC
Answered by William C. • Economics tutor
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What are the characteristics of perfect competition?

Homogeneous goods, Firms are price takers, An infinite number of suppliers and producers, Firms are profit maximisers, There are no barriers to entry, Producers have perfect information
IA
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Analyse Indifference Curves and the effect on lower prices. (20)

Explain Utility - satisfaction from consuming good Indifference curve- shows all combination of 2 goods which give consumer equal utilityDraw Indifference curve with examples.- explains why consumers will no...
SA
Answered by Sulyna A. • Economics tutor
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Taking the IS-LM and AS-AD relationship, show the shifts in the curves and explain the changes variables such as output, exchange rate, employment and price level following a decrease in interest rate.

A decrease in interest rate results in an increase in demand for real money balances, which accelerates spending, as well making investment desirable that further increases the output. This can be demonstrat...
Answered by • Economics tutor
1541 Views

Explain the meaning of the term ‘externality’ and give an example of one that is negative.

In Economics, externalities occur when producing or consuming a good/service causes an impact on third parties not directly related to the transaction. These impacts can be both positive or negative. Graphic...
TD
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