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The demand curve is downward facing because in order for quantity to rise, firms need to lower prices.

Normal good: 1 or greater than 1, as YED increases, QD for a good increases too.

Superior/ Luxury good: Also a normal good: it makes up a large proportion of consumption e.g. a new car. (Scarce to ...

Both the PPC and AD/AS model demonstrate an economy and show a potential output as well as a real output. A shift in LRAS in the AD/AS model shows that the potential output of a nation increases as a resu...

A recession is the phase of the economic cycle, after a boom, during which real GDP starts to fall and unemployment starts to rise. It is two successive quarters of negative economic growth. The UK's 'Gre...

Low unemployment (accounting for the natural rate of unemployment)

Sustainable economic growth

Balance of payments 

Stable inflation (usually at approximately 2%)