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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...

Economies of scale is a term used to describe the point at which is a business' operations have grown to a scale that they can operate at a lower unit cost due to reasons such as buying in bulk. This mean...

When there is a government budget deficit it means that the government spending is greater than the government revenue, hence there is more money being channeled into the economy. This money can be used t...

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...