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A lower interest rate reduces the return on saving, and as such reduces the opportunity cost of spending - for the only alternative to spending is saving. This increases the incentive for consumers and in...

Consumer surplus is the benefit to people who want to buy a certain good that comes from the good being cheaper than what the consumer would be willing to pay; in other words, it is the difference between...

Firstly, we know a negative externality is when the marginal social cost of a good or service is greater than the marginal private cost: in practice, this means that there are third parties (people who ar...

Know your structure well. -Write a short, concise and definition-orientated introduction-Plan 2 or 3 points you want to discuss and briefly jot down chains of reasoning, alongside potential counterpoints ...

Expansionary fiscal policy involves increasing aggregate demand (AD) by increasing government spending and decreasing taxation. Lower taxes will increase consumer disposable income which increases their s...