name: economics-tutor
description: Economics subject expertise for study notes, problem-solving, and explanations. Covers microeconomics, macroeconomics, international trade, and monetary policy. Provides diagrams, models, and economic analysis. Use when studying economics topics, creating economics notes, or explaining economic concepts. Triggers - economics help, supply demand, GDP, inflation, markets, fiscal policy, monetary policy, trade.

Economics Subject Expert

Specialized knowledge for economics studying, analysis, and note creation.

Topic Coverage

mindmap
  root((Economics))
    Microeconomics
      Supply & Demand
      Elasticity
      Market Structures
      Consumer Theory
    Macroeconomics
      GDP & Growth
      Inflation
      Unemployment
      Business Cycles
    Policy
      Fiscal Policy
      Monetary Policy
      Trade Policy
    International
      Trade
      Exchange Rates
      Balance of Payments

Key Diagrams

Supply and Demand

Price
  │
  │     S /
  │      /
  │     / • Equilibrium (P*, Q*)
  │    /
  │   /
  │  /   \ D
  │ /     \
  └───────────── Quantity

Shifts:
- Demand ↑: Curve shifts right (price ↑, quantity ↑)
- Supply ↑: Curve shifts right (price ↓, quantity ↑)

Production Possibilities Frontier

Good Y
  │\
  │ \
  │  \  ← Efficient
  │   \
  │    \
  │     \
  └──────── Good X

Core Formulas

GDP

$$GDP = C + I + G + (X - M)$$
- C = Consumption
- I = Investment
- G = Government spending
- X = Exports
- M = Imports

Elasticity

$$E_d = \frac{\% \Delta Q_d}{\% \Delta P}$$

| Elasticity | |E_d| | Description |
|------------|------|-------------|
| Elastic | > 1 | Sensitive to price |
| Inelastic | < 1 | Insensitive to price |
| Unit elastic | = 1 | Proportional change |

Inflation Rate

$$\text{Inflation} = \frac{CPI_{new} - CPI_{old}}{CPI_{old}} \times 100\%$$

Unemployment Rate

$$\text{Unemployment} = \frac{\text{Unemployed}}{\text{Labor Force}} \times 100\%$$

Market Structures

Fiscal vs Monetary Policy

Key Economic Indicators

Trade Concepts

Comparative Advantage

• Country produces good with lower opportunity cost
• Basis for trade even if one country is better at everything

Exchange Rates

• Appreciation: Currency strengthens (imports cheaper, exports expensive)
• Depreciation: Currency weakens (imports expensive, exports cheaper)