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Macro economics is the larger picture, how the economy works for the whole country or region. Micro economics examines how things work in a smaller level, examining one industry, business or group of invi...
It can be argued that gros...
Business cycles are short-run fluctuations in the economy's GDP, around the long-run trend rate of growth. Over each business cycle, the economy will first go through a period of expansion, unti...
There is an inverse relationship between price and quantity demanded. When the price is low, high quantities are demanded and vice versa when the price is high; for all goods which are not giffen good...
The income elasticity of demand measures the relationship between a change in quantity demanded and a change in income. The formula is:
(Percentage change in quantity demanded of good x) divid...
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