What is Voluntary unemployment Voluntary unemployment is defined as a situation where the unemployed choose not to accept a job at the going wage rate. Reasons for voluntary unemployment Generous unemployment benefits, which make accepting a job less attractive. High marginal tax rates, which reduce effective take home pay. Unemployed hoping to find a job […]
Impact of Immigration on UK Economy
In the past two decades, the UK has experienced a steady flow of net migrants into the economy. This net migration has had a wide-ranging impact on UK population, wages, productivity, economic growth and tax revenue. To what extent does net migration benefit the UK economy? International Migration ONS In 2016, Net long-term international migration […]
Demand-pull inflation
Demand-pull inflation Demand-pull inflation is a period of inflation which arises from rapid growth in aggregate demand. If aggregate demand (AD) rises faster than productive capacity (LRAS), then firms will respond by putting up prices, creating inflation. Inflation – a sustained increase in the price level. Demand-pull inflation – inflation caused by AD increasing faster […]
Price controls – advantages and disadvantages
Price controls – advantages and disadvantages Summary Price controls can take the form of maximum and minimum prices. They are a way to regulate prices and set either above or below the market equilibrium: Maximum prices can reduce the price of food to make it more affordable, but the drawback is a maximum price may […]
Difference between Gross and Net Amount
Difference between Gross and Net Amount It is very common to hear about the terms gross and net, both when we talk about wages, when we analyze a company’s bottom line or when they tell us a macroeconomic data. The gross and the net measure the same magnitude, but they are different concepts and we must know how to distinguish them so that […]
