Essays on topical issues, latest developments in UK and global economies, and answers to readers questions
Causes of business cyclePosted on September 21, 2017
The business or trade cycle relates to the volatility of economic growth, and the different periods the economy goes through (e.g. boom and bust), There are many different factors that cause the economic cycle – such as interest rates, confidence, the credit cycle and the multiplier effect. Some economists also point to supply side explanations, …...More
The effect of tax cutsPosted on September 18, 2017
Lower income tax rates increase the spending power of consumers and can increase aggregate demand, leading to higher economic growth (and possibly inflation). On the supply side, income tax cuts may also increase incentives to work – leading to higher productivity. However, the effect of tax cuts depends on how the tax cut is financed, …...More
Clever ways for firms to increase pricesPosted on September 14, 2017
Supermarkets and other retailers often seek ways to increase the price without losing customers. They have a few different options, depending on the good and its price elasticity of demand. In recent months, many supermarkets have managed cost increases by shrinking the size of the packet. Prices stay the same, but the price per gram …...More
A selection of e-books available from economicshelp.org. Includes NEW syllabus for AS and A Level Economics.