What does the completed square form of a quadratic look like?
What is the rate of Corporation Tax? (as of April 2023)
What are two factors that could shift Demand for Labour to the Left?
-Recession
-Decreased demand for the product the worker produces
Action that a country's central bank or government can take to influence how much money is in the economy and how much it costs to borrow.
How do trade unions affect labour markets?
Trade unions typically restrict supply of labour (by insisting firms hire from the union), shifting labour supply curve left and pushing up wages.
What graphical feature of a quadratic does completing the square help us to find?
Explain how a higher/lower marginal propensity to consume (MPC) will affect the multiplier effect.
A higher MPC means more money is spent in each round. Less money leaks out as savings. The multiplier is greater.
A lower MPC means less money is spent in each round. More money leaks out as savings. The multiplier is smaller.
Why is Investment important for an economy?
-Stimulates AD: Injection into circular flow/Component of AD
-Increases economic potential (shifts PPF)
-Increases worker productivity
-Raises international competitiveness (improving exports)
How do you rationalise the denominator for something of the form a/√b?
Multiply the numerator and denominator by √b
Adapt the Monopolistic Competition Diagram to show:
Increase in Variable Costs