This is an economics revision guide (e-book) designed for A Level. It includes both AS and A2.
If you do a specific exam board, you can choose a specific revision guide:
International
Sent immediately after purchase.
Last updated June 2022.
For schools: Network license – £105.00
Definition: Real wage unemployment occurs when wages are set above the equilibrium level causing the supply of labour to be greater than demand. Classical unemployment of Q1-Q2 caused by a wage NMW above the equilibrium. Classical economists argue the solution is to cut wages to reduce unemployment. For example, a fall in demand for labour …
Readers Question: What are the costs and benefits of the London 2012 Olympics? A cost-benefit analysis seeks to examine all the various costs and benefits. These include both the monetary costs and benefits and the non-monetary costs and benefits. Costs of London Olympics The financial cost of building facilities, which may only be used to …
The Neo-classical synthesis (also referred to as the neo-Keynesian theory) refers to the post-war macroeconomic development which combined elements of Keynesian macroeconomics with more classical microeconomic theory. (This is not relevant for A-Level economics, you may be relieved to know) Up until the 1930s, economics had been dominated by classical economists who argued that markets …
Readers Question Q) evaluate the view that ‘trade-offs will be required over the period of the cycle’? In the economic cycle, there is often a trade-offs between different macroeconomic objectives. The main macroeconomic objectives include: Low inflation Higher economic growth Low unemployment Low current account deficit Low government borrowing Stable exchange rate. For example, if the …
Readers Question: Could you differentiate between micro economics and macro economics? Microeconomics is the study of particular markets, and segments of the economy. It looks at issues such as consumer behaviour, individual labour markets, and the theory of firms. Macro economics is the study of the whole economy. It looks at ‘aggregate’ variables, such as …
Deflation means a fall in prices (a negative inflation rate). Though policymakers should generally be concerned if there is an inflation rate less than the target of 2%. For example, in the Eurozone Jan 2015, the headline inflation rate is -0.2%. Even if we strip away volatile prices like oil, core inflation is 0.8%. …
In recent months, we have seen a dramatic drop in oil prices. For many consumers and business, this fall in the price of oil will be welcome reduction in the cost of living and a reduction in the cost of business. However, is such a steep fall in oil prices good for the economy? Benefits of …