Long-run and Short- run ... curve: In the short run, ... idea about inflation and unemployment is true, but in the long run, the unemployment rate is natural and doesn't change whereas the level of inflation will
Back
Card 7
Front
... conflicts: Increased government spending may help boost an economy out of a recession, but increased spending will be likely a result of increased taxes in the future. This increased tax could reduce the incentives to work and income distribution
Back
Card 8
Front
... conflicts: The Bank of England has control over interest rates, but increased interest rates can be damaging for people, especially new homebuyers. This will lead to a worse income distribution and could reduce competition between businesses
Back
Card 9
Front
... policy conflicts: Policies that improve infrastructure will improve the efficiency of the economy but are likely to damage the environment
