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A cut in income tax will lead to a rise in income for consumers, as they are now paying less tax. This should lead to an increase in consumer spending, which boosts aggregate demand. An increase in aggreg...
[This is an exam style essay question, with the response being just one paragraph of multiple the student would have to write]One significant advantage to UK consumers of nationalising railway services co...
Smoking, specifically tobacco, is an example of a negative externality in that it harms negatively those outside of the original transaction. For example, a person walking down a high street inhaling seco...
One cause of inflation is due to the wage rate increasing at a faster rate than output. The cost of production for firms increases and to maintain profits they are likely to raise prices. When the prices ...
A negative externality is a type of market failure that occurs when the consumption or production of a good has an external cost on a third party that is not involved in the transaction. This external cos...
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