Inflation is when there is a rise in average price level. It is measured by the CPI which tracks the monthly prices of a weighted average basket of goods and services. If inflation was very high, and above the 2% target rate, this would be damaging to the UK economy. If prices are constantly rising, it is very likely that wages are not rising as often. If this is the case, disposable incomes would be falling as consumers would have less money left over after their normal spending. This would lead to a decline in living standards. Workers may ask firms for higher wages. Firms could then choose to increase wages and push prices up even more, or firms could lay-off workers. If firms decide to lay-off workers, then this would cause an increase in the unemployment rate.
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Collusive Oligopoly | A-Level Economics Model Paragraph (AQA, Edexcel, OCR)
An oligopoly market has high barriers to entry, and a few firms dominate the market. If there are only two or three firms with a similar market share, they are more likely to
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Competitive Oligopoly | A-Level Economics Model Paragraph
* define oligopoly
* draw diagram
* explain diagram
* pros - non-price competition
* cons -
* wasted resources on advertising increases barriers to entry
* local monopolies
* misallocation of resources
A competitive oligopoly market consists of a few
1 min read
Econplusdal UK Economy Stats
Economic growth
* 2024 annual economic growth: 1.1%
* quarterly economic growth: 0%
* annual growth forecast (1%)
* output gap: -0.6%
* GDP per capita: £36,000
* total GDP: £2.85 trillion
* services - 79%