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This question is a 25 mark question, it requires a variety of different skills and a strong structure to recieve the highest marks possible. This is a 'discuss' question therefore different arguments shou...

So, in the labour market there are firms that demand labour to be able to produce the goods that they sell, and there are workers who supply labour in order to earn a wage. First let’s think about the wor...

The natural rate of unemployment is where labour demand matches labour supply despite normal levels of unemployment occurring within the economy. This unemployment may be structural or frictional.

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A contestable market is one in which there are low sunk costs. These are costs that are spent upon entry but cannot be recovered upon exit. Reasons why the market may be contestable is low operating costs...

Cost-push inflation: caused by rising costs within an industry such as an increase in cost of raw materials, more expensive labour due to trade unions, indirext taxes imposed by the government. Can also b...