The G20 summit held in London is occuring against a backdrop of the worst global downturn since the Great Depression. The OECD warned that GDP for its 30 member countries is likely to fall by a record 4.3 per cent this year, against the 0.4 per cent drop that it forecast last November. The group …
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: we say that higher fiscal spending leads to higher economic growth but does this negative public saving also not lower investments hence lowering future growth opportunity? so is the current growth stimulus at a cost of future growth? Cutting taxes and boosting spending will lead to higher borrowing. This will hopefully boost aggregate …
Readers Question: How could you calculate the price elasticity of demand for petrol in the united states when the figure is 0.48? To calcuate the elasticity of demand, we divide the % change in quantity by the % change in price. For example, if the price of petrol in the US increased by 60% …
Readers Question – what on earth is the black market and how does the immigrant have an impact on that? The black market is a colloquial term that refers to economic activity that is not regulated by the government. It involves economic activity where people don’t declare tax returns or pay VAT e.t.c. It is …
If you have exams this afternoon, there isn’t much more revision you can do. What is important now is the right exam technique. These tips may sound like common sense and stating the obvious, but, every year a significant % of candidates make these mistakes and so reduce their grade. Although they may sound obvious …
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. …
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 …