A Common question at AS and A2 Level is to understand economic graphs and statistics. Look at the graph below and explain what happens to GDP at current prices between 1974-1983? Many students will answer – In this period GDP is falling. However, this is wrong. What is happening is that the growth rate is …
Readers Question: Assess the view that supply-side reforms have enabled the UK economy to be ‘more successful in maintaining growth, despite an appreciation in the value of its currency’ (Extract 1, lines 5-6}. (From Edexcel unit 3) An appreciation in the exchange rate would tend to reduce aggregate demand and lead to lower economic growth. …
There has been much debate about whether Turkey should be admitted to the European Union. These are some of the benefits and costs which Turkey is likely to face if it is successful in joining the EU. Benefits to Turkey of Joining the European Union EU If Turkey join the EU they have the potential …
A reader left a comment on a post saying the plural of Euro is Euro. I was surprised to see this because according to the rules of English it should be Euros. On researching the issue I found, that the European Commission did adopt Euro as the the plural of Euro. However, rather bizarrely the …
Readers Question: Why is US in Recession? According to the latest statistics provided by the Economist April 24th 2008 US economic growth is 2.4% year on year. In the last quarter, growth is 0.6%. This is still a long way off the technical definition of a recession – negative economic growth for two consecutive quarters. …
You are welcome to ask questions on Economics. However, due to volume of questions, I can no longer promise to answer all questions. I will post the answer on this blog, for everyone to benefit from. I shall try to answer the economics question and / or point to other resources but please bear in …
Readers Question. Explain the benefits of increasing the rate of unemployment benefit for 1. the unemployed, 2. society. Identify and costs that may result from such a policy. Benefits of increasing unemployment benefits Provides more income, reducing relative poverty and improving living standards. Gives them support in finding the best job. If benefits are low, …
Readers Question: Can you please differentiate between the causes of once-off inflation and sustained inflation? A temporary period of inflation, also called one-off inflation, may be caused by: Temporary inflation in 2008 and 2011. Rising in tax rates. Suppose the chancellor announces a 10% rise in fuel duty. This means prices will rise. But, next …