Definition Wage-push inflation is the increase in general price level resulting from higher wages in an economy. Explanation of wage-push inflation If firms increase nominal wages by 5%, they experience higher costs of production. This is likely to cause firms to pass the cost increases onto consumers in the form of higher prices. Firms increase …
Since the 1970s, we have seen a fall in average global inflation rates. There have been periods of inflation (often due to rise in oil prices), but the overall trend has seen much lower inflation rates. In the 1970s, inflation was seen as one of the main macro-economic challenges, but now many feel the challenge …
A high wage economy is characterised by high average incomes, rising real wages and fair distribution of income so the lowest income deciles are well paid. In summary, high wage economies tend to be characterised by high economic growth, rising labour productivity, high levels of education and training and good labour protections. (e.g. trade unions …
International trade between different countries is an important factor in raising living standards, providing employment and enabling consumers to enjoy a greater variety of goods. International trade has occurred since the earliest civilisations began trading, but in recent years international trade has become increasingly important with a larger share of GDP devoted to exports and …
In the past two decades, we have had a remarkable period of low inflation. Inflation has been so low, some economists have suggested a new paradigm – the end of inflation as a primary economic concern. Since 2009, any predictions of imminent inflation have proved to be wide of the mark. There have been warnings …
The market share of leading supermarkets, in the UK grocery market industry. Market share 2014 – see: Battle for UK Supermarket market share Blog from 2012 The UK supermarket industry often makes a popular data response question. The five firm concentration ratio for the industry is 66% – a case of an oligopoly. Tesco – …
Labour shortages occur when employers struggle to fill labour vacancies because of insufficient labour applying for the jobs. Labour shortages can occur in geographical regions or in occupations with special requirements in terms of skill or function. Labour shortages can also be seasonal in industries like retail (Christmas) and agriculture (harvest time). Recently, since Brexit …
Slowbalisation – a phenomena which involves a slowing down of the pace of global integration. In recent decades globalisation has become so dominant, that we often assume the process is never-ending. Between 1970 and 2008, world exports as a share of GDP rose from 13% to 31%, and it seemed that globalisation was an unstoppable …