Source: https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-5-consequences-of-inflation [Revision notes](https://senecalearning.com/en-gb/revision-notes.md) › [A Level](https://senecalearning.com/en-gb/revision-notes/a-level.md) › [Economics](https://senecalearning.com/en-gb/revision-notes/a-level/economics.md) › [Edexcel](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel.md) › Consequences of Inflation # Consequences of Inflation Economics: Edexcel A A Level, topic 3.1.5 ## Consequences of Inflation The consequences of inflation can have varied impacts on households, firms and the wider economy. These can be more severe if the inflation is unexpected and if firms, for example, haven't had a chance to plan. ### Consequences for consumers ![Consequences for consumers](https://image-v2.cdn.app.senecalearning.com/2018-09/f3560f20-9d9b-41b2-9446-4045a747e1d3/inflation-board-.jpg) - For individuals, inflation will erode the real value of money. That is to say, real incomes will fall, as the purchasing power of incomes falls. So standard of living also falls. - Inequality rises because the more skilled workers can negotiate nominal wage increases that keep pace or outstrip inflation. - Cash loses value more quickly. This means that some consumers take more trips to the bank ('shoe leather' costs). - Menu costs are the costs firms face of keeping prices updated in shops. ### Impact on savers and borrowers ![Impact on savers and borrowers](https://image-v2.cdn.app.senecalearning.com/2018-07/6d76701c-0787-4a0e-ba6d-0c94fb9aa376/savings-growth.jpg) - Savers lose out because the real interest rate (nominal interest rate minus inflation) falls as inflation rises. - Borrowers gain because the real interest rate falls. - Indebtedness falls because the real value of debt falls as inflation erodes the real value of repayments. ### Consequences for firms ![Consequences for firms](https://image-v2.cdn.app.senecalearning.com/2018-08/01755fdc-c875-4a00-aaa5-67faf7ba14e2/leader-business-authority.jpg) - Business uncertainty – volatile prices means firms may reduce investment because it is riskier. - Falling international competitiveness – a high inflation rate vs main trading partners will mean a country's exports will be less internationally competitive. ## Consequences of Inflation (Cont.) The consequences of inflation can have varied impacts on households, firms and the wider economy. These can be more severe if the inflation is unexpected and if firms, for example, haven't had a chance to plan. ### The role of expectations ![The role of expectations](https://image-v2.cdn.app.senecalearning.com/2018-08/a5038717-5fdc-40fb-95d4-68685f8bbd81/inflation-.jpg) - If inflation expectations rise, this can cause people to spend now to avoid the future higher prices. - This could lead to demand rising, causing prices to rise even further. - Expectations of higher inflation could cause higher inflation: a self-fulfilling prophecy! ### Wage-price spiral ![Wage-price spiral](https://image-v2.cdn.app.senecalearning.com/2018-08/d80c66a6-679c-4b72-a7aa-6ff77a47504f/wage-increase-.jpg.jpg) - As inflation rises, people start to expect higher inflation. - This leads to them asking for higher nominal wage rises to keep pace with the rising cost of goods in shops. - Firms may grant this to begin with, but then as their costs are also rising, they may have to pass this on to consumers with higher prices. So they demand higher wages again. - This can become a vicious spiral. ### Other factors ![Other factors](https://image-v2.cdn.app.senecalearning.com/2018-08/1bdae215-66a1-4ce5-9c98-d7cf02d6c5f0/collapse-bank-.jpg) - The consequences of inflation depends on a number of factors: - Is it unexpected or expected ? - Is it a temporary or persistent problem? - The extent to which workers have negotiation power in terms of unions or skill level. - What is happening to nominal interest rates via the central bank response? - What is happening to inflation rates in the rest of the world? ## Test yourself on Consequences of Inflation - Which of the following is a consequence of inflation for firms? - What are menu costs? - Which of the following factors would worsen the effects of inflation for an economy? - What can expectations of higher inflation lead to? [Practise this topic for free](https://app.senecalearning.com/classroom/course/d903555c-0201-4e4b-b4f4-8a5ad1345c9e/section/622227df-cd8b-4832-b66b-b3595a69d3a3/session) - Previous topic: [3.1.4 Causes of Inflation](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-4-causes-of-inflation.md) - Next topic: [3.1.6 Employment & Unemployment](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-6-employment-and-unemployment.md) ## Economics: Edexcel A A Level contents ### 1 Introduction to Markets - 1.1 Nature of Economics - [1.1.1 Economics as a Social Science](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-1-1-economics-as-a-social-science.md) - [1.1.2 Positive & Normative Economic Statements](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-1-2-positive-and-normative-economic-statements.md) - [1.1.3 The Economic Problem](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-1-3-the-economic-problem.md) - [1.1.4 Resources](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-1-4-resources.md) - [1.1.5 Production Possibility Frontiers](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-1-5-production-possibility-frontiers.md) - [1.1.6 Specialisation & Division of Labour](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-1-6-specialisation-and-division-of-labour.md) - [1.1.7 Types of Economies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-1-7-types-of-economies.md) - [1.1.8 End of Topic Test - Nature of Economics](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-1-8-end-of-topic-test-nature-of-economics.md) - [1.1.9 Application Questions - Nature of Economics](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-1-9-application-questions-nature-of-economics.md) - 1.2 How Markets Work - [1.2.1 Rational Decision Making](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-1-rational-decision-making.md) - [1.2.2 Demand](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-2-demand.md) - [1.2.3 Elasticities of Demand](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-3-elasticities-of-demand.md) - [1.2.4 Elasticities of Demand 2](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-4-elasticities-of-demand-2.md) - [1.2.5 Elasticity & Revenue](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-5-elasticity-and-revenue.md) - [1.2.6 Supply](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-6-supply.md) - [1.2.7 Elasticity of Supply](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-7-elasticity-of-supply.md) - [1.2.8 Price Determination](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-8-price-determination.md) - [1.2.9 Price Mechanism](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-9-price-mechanism.md) - [1.2.10 Consumer & Producer Surplus](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-10-consumer-and-producer-surplus.md) - [1.2.11 Indirect Taxes & Subsidies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-11-indirect-taxes-and-subsidies.md) - [1.2.12 A-A* (AO3/4) - Taxing Prices or Quantities?](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-12-a-a-ao34-taxing-prices-or-quantities.md) - [1.2.13 Alternative View of Consumer Behaviour](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-13-alternative-view-of-consumer-behaviour.md) - [1.2.14 End of Topic Test - Markets](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-14-end-of-topic-test-markets.md) - [1.2.15 A-A* (AO3/4) - Markets](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/1-2-15-a-a-ao34-markets.md) ### 2 Market Failure - 2.1 Market Failure - [2.1.1 Types of Market Failure](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-1-1-types-of-market-failure.md) - [2.1.2 Externalities](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-1-2-externalities.md) - [2.1.3 The Deadweight Welfare Loss of Externalities](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-1-3-the-deadweight-welfare-loss-of-externalities.md) - [2.1.4 A-A* (AO3/4) - The Externalities of Education](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-1-4-a-a-ao34-the-externalities-of-education.md) - [2.1.5 Public Goods](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-1-5-public-goods.md) - [2.1.6 Information Gaps](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-1-6-information-gaps.md) - [2.1.7 End of Topic Test - Market Failure](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-1-7-end-of-topic-test-market-failure.md) - [2.1.8 Application Questions - Market Failure](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-1-8-application-questions-market-failure.md) - 2.2 Government Intervention - [2.2.1 Government Intervention in Markets](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-2-1-government-intervention-in-markets.md) - [2.2.2 Subsidies & Price Controls](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-2-2-subsidies-and-price-controls.md) - [2.2.3 Pollution Permits & Regulation](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-2-3-pollution-permits-and-regulation.md) - [2.2.4 A-A* (AO3/4) - European Emissions Trading](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-2-4-a-a-ao34-european-emissions-trading.md) - [2.2.5 State Provision & Information Provision](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-2-5-state-provision-and-information-provision.md) - [2.2.6 Government Failure](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-2-6-government-failure.md) - [2.2.7 End of Topic Test - Government Intervention](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-2-7-end-of-topic-test-government-intervention.md) - [2.2.8 A-A* (AO3/4) - Government Intervention](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/2-2-8-a-a-ao34-government-intervention.md) ### 3 The UK Macroeconomy - 3.1 Measures of Economic Performance - [3.1.1 Measuring Economic Growth](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-1-measuring-economic-growth.md) - [3.1.2 National Income Data](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-2-national-income-data.md) - [3.1.3 Inflation](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-3-inflation.md) - [3.1.4 Causes of Inflation](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-4-causes-of-inflation.md) - [3.1.5 Consequences of Inflation](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-5-consequences-of-inflation.md) - [3.1.6 Employment & Unemployment](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-6-employment-and-unemployment.md) - [3.1.7 Causes & Impact of Unemployment](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-7-causes-and-impact-of-unemployment.md) - [3.1.8 A-A* (AO3/4) - Hysteresis](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-8-a-a-ao34-hysteresis.md) - [3.1.9 Balance of Payments](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-9-balance-of-payments.md) - [3.1.10 Current Account Deficit & Imbalances](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-10-current-account-deficit-and-imbalances.md) - [3.1.11 End of Topic Test - Economic Performance](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-11-end-of-topic-test-economic-performance.md) - [3.1.12 Application Questions Macroeconomy](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-1-12-application-questions-macroeconomy.md) - 3.2 Aggregate Demand - [3.2.1 Aggregate Demand](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-2-1-aggregate-demand.md) - [3.2.2 Consumption](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-2-2-consumption.md) - [3.2.3 Investment](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-2-3-investment.md) - [3.2.4 Government Expenditure](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-2-4-government-expenditure.md) - [3.2.5 Net Trade](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-2-5-net-trade.md) - [3.2.6 End of Topic Test - Aggregated Demand](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-2-6-end-of-topic-test-aggregated-demand.md) - [3.2.7 Application Questions - AD](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-2-7-application-questions-ad.md) - 3.3 Aggregate Supply - [3.3.1 Aggregate Supply](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-3-1-aggregate-supply.md) - [3.3.2 End of Topic Test - Aggregated Supply](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-3-2-end-of-topic-test-aggregated-supply.md) - [3.3.3 A-A* (AO3/4) -Aggregate Supply](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-3-3-a-a-ao34-aggregate-supply.md) - 3.4 National Income - [3.4.1 National Income](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-4-1-national-income.md) - [3.4.2 Injections & Withdrawals](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-4-2-injections-and-withdrawals.md) - [3.4.3 Equilibrium Level of Real National Output](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-4-3-equilibrium-level-of-real-national-output.md) - [3.4.4 Multiplier Effect](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-4-4-multiplier-effect.md) - [3.4.5 End of Topic Test - National Income](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-4-5-end-of-topic-test-national-income.md) - [3.4.6 Application Questions - National Income](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-4-6-application-questions-national-income.md) - 3.5 Economic Growth - [3.5.1 Causes of Economic Growth](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-5-1-causes-of-economic-growth.md) - [3.5.2 Output Gaps](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-5-2-output-gaps.md) - [3.5.3 Business Cycle](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-5-3-business-cycle.md) - [3.5.4 Impact of Economic Growth](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-5-4-impact-of-economic-growth.md) - [3.5.5 End of Topic Test - Economic Growth](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-5-5-end-of-topic-test-economic-growth.md) - [3.5.6 A-A* (AO3/4) - Growth](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/3-5-6-a-a-ao34-growth.md) ### 4 The UK Economy - Policies - 4.1 Macroeconomic Objectives & Policies - [4.1.1 Possible Objectives](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-1-possible-objectives.md) - [4.1.2 Demand-Side Policies - Monetary](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-2-demand-side-policies-monetary.md) - [4.1.3 Demand-Side Policies - Monetary 2](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-3-demand-side-policies-monetary-2.md) - [4.1.4 A-A* (AO3/4) - The Future of Interest Rates](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-4-a-a-ao34-the-future-of-interest-rates.md) - [4.1.5 Demand-Side Policies - Fiscal](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-5-demand-side-policies-fiscal.md) - [4.1.6 Demand-Side Policies in 2007-08](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-6-demand-side-policies-in-2007-08.md) - [4.1.7 Strengths & Weaknesses of Demand Side](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-7-strengths-and-weaknesses-of-demand-side.md) - [4.1.8 Supply-Side Policies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-8-supply-side-policies.md) - [4.1.9 Supply-Side Policies 2](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-9-supply-side-policies-2.md) - [4.1.10 Conflicts Between Objectives](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-10-conflicts-between-objectives.md) - [4.1.11 A-A* (AO3/4) - Conflicting Incentives](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-11-a-a-ao34-conflicting-incentives.md) - [4.1.12 Phillips Curve](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-12-phillips-curve.md) - [4.1.13 End of Topic Topic - Policies & Objectives](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-13-end-of-topic-topic-policies-and-objectives.md) - [4.1.14 Application Questions - UK Policies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/4-1-14-application-questions-uk-policies.md) ### 5 Business Behaviour - 5.1 Business Growth - [5.1.1 Size & Types of Firms](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-1-1-size-and-types-of-firms.md) - [5.1.2 Business Growth](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-1-2-business-growth.md) - [5.1.3 Pros & Cons of External Expansion](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-1-3-pros-and-cons-of-external-expansion.md) - [5.1.4 Demergers](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-1-4-demergers.md) - [5.1.5 End of Topic Test - Business Growth](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-1-5-end-of-topic-test-business-growth.md) - [5.1.6 A-A* (AO3/4) - Business Growth](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-1-6-a-a-ao34-business-growth.md) - 5.2 Business Objectives - [5.2.1 Business Objectives](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-2-1-business-objectives.md) - [5.2.2 End of Topic Test - Business Objectives](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-2-2-end-of-topic-test-business-objectives.md) - [5.2.3 Application Questions - Business Objectives](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-2-3-application-questions-business-objectives.md) - 5.3 Revenues, Costs & Profits - [5.3.1 Revenue](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-3-1-revenue.md) - [5.3.2 Costs](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-3-2-costs.md) - [5.3.3 Economies & Diseconomies of Scale](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-3-3-economies-and-diseconomies-of-scale.md) - [5.3.4 Profits](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-3-4-profits.md) - [5.3.5 Profits 2](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-3-5-profits-2.md) - [5.3.6 End of Topic Test - Revenue, Costs & Profits](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-3-6-end-of-topic-test-revenue-costs-and-profits.md) - [5.3.7 A-A* (AO3/4) - Revenue, Costs & Profit](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/5-3-7-a-a-ao34-revenue-costs-and-profit.md) ### 6 Market Structures - 6.1 Market Structures - [6.1.1 Efficiency](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-1-efficiency.md) - [6.1.2 Perfect Competition](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-2-perfect-competition.md) - [6.1.3 Perfect Competition 2](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-3-perfect-competition-2.md) - [6.1.4 Monopolistic Competition](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-4-monopolistic-competition.md) - [6.1.5 Oligopolies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-5-oligopolies.md) - [6.1.6 The Prisoner's Dilemma](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-6-the-prisoners-dilemma.md) - [6.1.7 Collusion in Oligopolistic Markets](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-7-collusion-in-oligopolistic-markets.md) - [6.1.8 A-A* (AO3/4) - Which Factors Affect Collusion?](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-8-a-a-ao34-which-factors-affect-collusion.md) - [6.1.9 Monopolies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-9-monopolies.md) - [6.1.10 Price Discrimination](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-10-price-discrimination.md) - [6.1.11 Monopsony](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-11-monopsony.md) - [6.1.12 A-A* (AO3/4) - Models in Economics](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-12-a-a-ao34-models-in-economics.md) - [6.1.13 Contestability](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-13-contestability.md) - [6.1.14 Benefits of Contestability](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-14-benefits-of-contestability.md) - [6.1.15 End of Topic Test - Market Structures](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-15-end-of-topic-test-market-structures.md) - [6.1.16 Application Questions - Market Structures](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-16-application-questions-market-structures.md) - [6.1.17 A-A* (AO3/4) - Cereal Collusion](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-1-17-a-a-ao34-cereal-collusion.md) - 6.2 Labour Market - [6.2.1 Demand for Labour](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-2-1-demand-for-labour.md) - [6.2.2 Supply of Labour](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-2-2-supply-of-labour.md) - [6.2.3 Labour Market Imperfections](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-2-3-labour-market-imperfections.md) - [6.2.4 A-A* (AO3/4) - Labour Productivity & Unemployment](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-2-4-a-a-ao34-labour-productivity-and-unemployment.md) - [6.2.5 A-A* (AO3/4) - What Level of Unionisation is Good?](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-2-5-a-a-ao34-what-level-of-unionisation-is-good.md) - [6.2.6 Wage Determination](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-2-6-wage-determination.md) - [6.2.7 Elasticity of Labour Supply & Demand](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-2-7-elasticity-of-labour-supply-and-demand.md) - [6.2.8 Intervention in Setting Wages](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-2-8-intervention-in-setting-wages.md) - [6.2.9 End of Topic Test - Labour Market](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-2-9-end-of-topic-test-labour-market.md) - [6.2.10 A-A* (AO3/4) - Labour Markets](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-2-10-a-a-ao34-labour-markets.md) - 6.3 Government Intervention - [6.3.1 Reasons for Government Intervention](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-1-reasons-for-government-intervention.md) - [6.3.2 Government Promotion of Competition](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-2-government-promotion-of-competition.md) - [6.3.3 Usefulness of Competition Policy & Examples](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-3-usefulness-of-competition-policy-and-examples.md) - [6.3.4 A-A* (AO3/4) - Modern Competition Policy](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-4-a-a-ao34-modern-competition-policy.md) - [6.3.5 Privatisation](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-5-privatisation.md) - [6.3.6 Government Regulation](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-6-government-regulation.md) - [6.3.7 A-A* (AO3/4) - Nationalisation vs Privatisation](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-7-a-a-ao34-nationalisation-vs-privatisation.md) - [6.3.8 Government Protection of Suppliers and Employees](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-8-government-protection-of-suppliers-and-employees.md) - [6.3.9 Impact of Government Intervention](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-9-impact-of-government-intervention.md) - [6.3.10 End of Topic Test - Government Intervention](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-10-end-of-topic-test-government-intervention.md) - [6.3.11 Application Questions - Government Intervention](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/6-3-11-application-questions-government-intervention.md) ### 7 A Global Perspective - 7.1 International Economics - Globalisation & Trade - [7.1.1 Globalisation](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-1-1-globalisation.md) - [7.1.2 Globalisation for LEDCs](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-1-2-globalisation-for-ledcs.md) - [7.1.3 Globalisation for MEDCs](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-1-3-globalisation-for-medcs.md) - [7.1.4 Specialisation & Trade](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-1-4-specialisation-and-trade.md) - [7.1.5 Pattern of Trade](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-1-5-pattern-of-trade.md) - [7.1.6 Terms of Trade](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-1-6-terms-of-trade.md) - [7.1.7 Trading Blocs](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-1-7-trading-blocs.md) - [7.1.8 UK, EU & WTO](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-1-8-uk-eu-and-wto.md) - [7.1.9 End of Topic Test - Globalisation & Trade](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-1-9-end-of-topic-test-globalisation-and-trade.md) - [7.1.10 A-A* (AO3/4) - Globalisation & Trade](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-1-10-a-a-ao34-globalisation-and-trade.md) - 7.2 International Economics - Currency - [7.2.1 Merged Currency](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-1-merged-currency.md) - [7.2.2 Restrictions on Free Trade](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-2-restrictions-on-free-trade.md) - [7.2.3 Arguments for Protectionism](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-3-arguments-for-protectionism.md) - [7.2.4 Arguments Against Protectionism](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-4-arguments-against-protectionism.md) - [7.2.5 Balance of Payments](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-5-balance-of-payments.md) - [7.2.6 Balance of Payments 2](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-6-balance-of-payments-2.md) - [7.2.7 Floating Exchange Rates](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-7-floating-exchange-rates.md) - [7.2.8 Fixed Exchange Rate](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-8-fixed-exchange-rate.md) - [7.2.9 International Competitiveness](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-9-international-competitiveness.md) - [7.2.10 End of Topic Test - International Economy](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-10-end-of-topic-test-international-economy.md) - [7.2.11 Application Questions - International Economics](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/7-2-11-application-questions-international-economics.md) ### 8 Finance & Inequality - 8.1 Poverty & Inequality - [8.1.1 Absolute & Relative Poverty](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-1-1-absolute-and-relative-poverty.md) - [8.1.2 Inequality](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-1-2-inequality.md) - [8.1.3 Inequality 2](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-1-3-inequality-2.md) - [8.1.4 Lorenz Curve](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-1-4-lorenz-curve.md) - [8.1.5 Government Policy on Poverty](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-1-5-government-policy-on-poverty.md) - [8.1.6 End of Topic Test - Poverty & Inequality](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-1-6-end-of-topic-test-poverty-and-inequality.md) - [8.1.7 A-A* (AO3/4) - Inequality & Poverty](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-1-7-a-a-ao34-inequality-and-poverty.md) - 8.2 Emerging & Developing Economies - [8.2.1 Measures of Development](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-1-measures-of-development.md) - [8.2.2 Factors Influencing Growth & Development](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-2-factors-influencing-growth-and-development.md) - [8.2.3 Barriers to Development](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-3-barriers-to-development.md) - [8.2.4 Barriers to Development 2](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-4-barriers-to-development-2.md) - [8.2.5 A-A* (AO3/4) - The Bottom Billion](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-5-a-a-ao34-the-bottom-billion.md) - [8.2.6 Development Strategies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-6-development-strategies.md) - [8.2.7 Interventionist Strategies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-7-interventionist-strategies.md) - [8.2.8 Aid](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-8-aid.md) - [8.2.9 International Institutions](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-9-international-institutions.md) - [8.2.10 International Institutions 2](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-10-international-institutions-2.md) - [8.2.11 End of Topic Test - Emerging & Developing](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-11-end-of-topic-test-emerging-and-developing.md) - [8.2.12 Application Questions - Developing Countries](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-2-12-application-questions-developing-countries.md) - 8.3 The Financial Sector - [8.3.1 Role of Financial Markets](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-3-1-role-of-financial-markets.md) - [8.3.2 Market Failure in the Financial Sector](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-3-2-market-failure-in-the-financial-sector.md) - [8.3.3 Role of Central Banks](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-3-3-role-of-central-banks.md) - [8.3.4 End of Topic Test - The Financial Sector](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-3-4-end-of-topic-test-the-financial-sector.md) - [8.3.5 A-A* (AO3/4) - Financial Sector](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-3-5-a-a-ao34-financial-sector.md) - 8.4 Role of the State in the Macroeconomy - [8.4.1 Public Expenditure](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-4-1-public-expenditure.md) - [8.4.2 Taxation](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-4-2-taxation.md) - [8.4.3 Public Sector Finances](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-4-3-public-sector-finances.md) - [8.4.4 End of Topic Test - Role of the State](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-4-4-end-of-topic-test-role-of-the-state.md) - [8.4.5 Application Questions - Role of the State](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/8-4-5-application-questions-role-of-the-state.md) ### 9 Examples of Global Policy - 9.1 International Policies - [9.1.1 Global Debt & Deficit Policies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/9-1-1-global-debt-and-deficit-policies.md) - [9.1.2 Poverty & Inequality Policies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/9-1-2-poverty-and-inequality-policies.md) - [9.1.3 Changes in Interest Rates](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/9-1-3-changes-in-interest-rates.md) - [9.1.4 Competitiveness Policies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/9-1-4-competitiveness-policies.md) - [9.1.5 End of Topic Test - International Policies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/9-1-5-end-of-topic-test-international-policies.md) - [9.1.6 A-A* (AO3/4) - International Policies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/9-1-6-a-a-ao34-international-policies.md) - 9.2 Policy Responses to Shocks - [9.2.1 International Tax Policies](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/9-2-1-international-tax-policies.md) - [9.2.2 Problems for Policymakers](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/9-2-2-problems-for-policymakers.md) - [9.2.3 End of Topic Test - Policy Responses](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/9-2-3-end-of-topic-test-policy-responses.md) - [9.2.4 Application Questions - Policy Responses](https://senecalearning.com/en-gb/revision-notes/a-level/economics/edexcel/9-2-4-application-questions-policy-responses.md)