ygyff
- Created by: FunkyFrog
- Created on: 12-05-14 23:06
View mindmap
- 0/3: Extract C (2-3) suggests that the 'large degree of spare capacity should keep inflation low'
- Spare capacity implies that there is likely to be exces supply (or lack of demand)
- Excess supply - prices likely to fall
- Manufactures and retailers opereate in a competitive environment
- Prices will be cut to increase sales
- If all firms cut costs, then the rate of rising prices will fall
- Spare Capacity - negative output gap/unemployment
- Wage increases (labour costs) are less likely to increase
- 0/3: Extract C (2-3) suggests that the 'large degree of spare capacity should keep inflation low'
- Spare capacity implies that there is likely to be exces supply (or lack of demand)
- Excess supply - prices likely to fall
- Manufactures and retailers opereate in a competitive environment
- Prices will be cut to increase sales
- If all firms cut costs, then the rate of rising prices will fall
- Spare Capacity - negative output gap/unemployment
- Wage increases (labour costs) are less likely to increase
- Less likely to demand goods if unemployed
- Wage increases (labour costs) are less likely to increase
- Less likely to demand goods if unemployed
- 0/3: Extract C (2-3) suggests that the 'large degree of spare capacity should keep inflation low'
- Wage increases (labour costs) are less likely to increase
Comments
No comments have yet been made