it's a 25 mark lol #getitright

@@whatabadman6522 its 30 marker for edexcel #shutyourmouth

@@AfricanGotPace lmao

@@AfricanGotPace lol

@@whatabadman6522 Maybe them man do another exam board.

laurence ainsworth day before the exam binge squad

@Vihaan Kamdyn wtf why would you even want to hack someone’s instagram? Seems like a lot of effort for little benefit.....

@@EternalShadow1667 It's a spambot.

How was those 2 years?

@@JK-vm7yo Ended up being 1 year since I dropped econ at AS but got an A!

Could you also say that as a cost; the fact that the inflation increase and prices go up means less can be bought with your savings and so that's a cost?

@@eternalpresidentkimil-sung9841 yes, inflation reduces purchasing power of money which is considered a drawback

7 years late but I’d argue it depends on the product itself. If it is price inelastic as it is a necessity then it is, of course, unlikely for consumption to change

It reduces the competitiveness of exports, since price rises mean the cost of foreign countries buying UK goods is more expensive.

lawrence rashid Still lots more coming

The difference is that the £11000 you earned is the equivalent value of £10670 the year before following 3% inflation. Say there was a 10700 tax band at which point all income past this point was taxed at 20% - you would keep 80% of the increased wage that exceeded 10700. £300*0.80 = £240 but before your £10670 in real terms was being taxed at a lower tax band (say 10%) and therefore you kept more of your income in real (not nominal) terms. 10670 taxed at 10% leaves you £9603 11000 taxed at 10% up to 1700 and then 20% on all income exceeding this leaves ((10700 * 0.90) + (300 * 0.80)) = £9870 9603 adjusted for inflation (3%) is 9891, not 9870. Therefore your income has fallen in real terms.

@@maxcullen4120 Yeah, real income instead of nominal income

Now what do u think?

Arsenal’s a joke now

Nah they won the FA Cup recently, I think arteta ball is well and truly alive

•_• yeah that was my comment 2 months ago lol

@@zk_011 this didn’t age well

The stable consumption is a result of the healthy amounts of inflation - inflation can increase consumer confidence as economic growth occurs

Very good 😉

Workers think inflations gonna happen, so they go to their bosses and say I want my real wage to stay the same, to do this the nominal wage has to go up to adjust for the predicted inflation. If businesses now have to pay their workers more across the whole economy every businesses costs of production go up. If you shift SRAS inwards you will see that the price level increases. This means that the act of people speculating inflation made it a reality. It’s a self fulfilling prophecy. This is cost push By the same token if consumers think that in the future inflation will happen this will cause their purchasing power (how far their money will go) to decrease. If you think you will have less money in the long run you will buy in the short run to maximise utility. Excessive consumption shifts AD, this causes demand pull inflation.

@@joshuagrifiiths9228 thx

High inflation can suggest that changes in bank rates may be necessary and that a recession could occur, i.e. altering the interest rates (as we have seen this year). In turn, these deflation strategies can slow economic growth and rise the cost of living via more expensive mortgages and loans. Therefore, customer confidence and spending in the economy could decrease, leading to a negative multiplier effect that further pronounces these economic contractions as people spend less and save more (a cash leakage in the circular flow of income).

Will Kinsella That effect (if it happens) will come later. The depreciation you have mentioned comes as a result of inflation eroding competitiveness and therefore there being a lack of demand for exports. The lost of int. competitiveness comes first, it is a killer for countries when it happens