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Explain what is meant by the rate of inflation and  analyse the main causes of inflation

Inflation is a sustained increase in the general price level leading to a fall in the purchasing power or value of money. The rate of inflation is measured by the annual percentage increase in the level of c...
KL
Answered by Katie L. • Economics tutor
3523 Views

Explain how a decrease in interest rates affects real GDP and inflation. When may a decrease in the interest rate not affect real GDP?

When interest rates decrease, this decreases the cost of borrowing and reduces the reward for saving. As a result, there is a higher incentive for firms and individuals to borrow/spend and a lower incentive ...
IB
Answered by India B. • Economics tutor
18297 Views

Evaluate policies that could be implemented to reduce the market failures arising from polluting industries.

1 - Definitions: Products of such industries are de-merit goods with negative externalities in production and as such MSC > MPC of production, so products are over produced under the free market (this is ...
JD
Answered by Joshua D. • Economics tutor
2333 Views

Explain three difficulties economists face when they try to measure unemployment accurately.

Unemployment, while useful in some cases, is inherently flawed as a metric for socio-economic progress. Official unemployment statistics fail to take into account the issue of hidden unemployment, defined as...
CR
5385 Views

explain the effect of a rise in government expenditure in the AD-AS framework

A rise in government expenditure shifts the aggregate demand to the right (Insert graph). We assume that there is no change to the aggregate supply and that this is a one time increase. In the short-run both...
CA
2154 Views