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Both the Consumer Price Index (CPI) and Retail Price Index (RPI) are ways of measuring inflation which is the average change in price of a basket of goods. The RPI, however, includes the costs of housing suc...

Current accountThe balance of payments plus net investment incomes from overseas assets and net transfersBalance of trade in goods: the difference between imports and exports of goods in the primary and seco...

First of all let’s define Marginal Cost:-It is the cost to a firm to produce one additional unit of output e.g. the cost of Volkswagen to produce an extra carInitially due to the law of increasing marginal r...

International trade means that international firms can enter the UK market. This will increase supply, which in turn lowers prices and increases quantity available. This will lead to an increase in consumer ...

A cut in income tax will lead to a rise in income for consumers, as they are now paying less tax. This should lead to an increase in consumer spending, which boosts aggregate demand. An increase in aggregate...