Marshall-Lerner Condition | A-Level Economics Model Paragraph (AQA, Edexcel, OCR)

* Normally, when your currency depreciates * exports increase and imports fall so balance of payments improves * However, * The J-curve shows that,

* Summary * AD left shift * Evaluation * sign of high incomes - luxury goods being imported * pound will fall and current account

Monetary policy is the use of interest rates to influence the aggregate demand and therefore the inflation rate of an

One policy the government could use to reduce differences in wages is to increase the mininum wage for low earners.

Negative Externalities in Consumption The diagram shows a market failure (misallocation of resources) with fast food. Fast food is a