How government spending and taxation can affect the pattern of economic activity
Governments use spending and taxes to shift resources across the economy. These decisions change who gets what, which sectors grow, and how income spreads across society.
Real World
When the UK government introduced the Levelling Up Fund, billions were directed to deprived northern regions like Sunderland, shifting economic activity away from London and the South East.
Exam Focus
Use the phrase 'pattern of economic activity' in your answer — examiners reward it as a signal you've addressed the question precisely.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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