Introduction – Recent UK economic performance The UK economy is currently growing at an annual rate of 1.6%, it has low inflation close to the governments target of 2.%. Unemployment has risen in the last 8 months but it is still low at 1.4 million (ILO Survey) compared to the last recession of 1992. The …
Policies to halt the slide of the dollar 1. Increase US interest rates · Higher interest rates will attract more hot money flows into the US and therefore cause an appreciation. · Also higher interest rates will cause an increase in savings and a fall in spending this will help reduce imports into the US …
To recover from a recession there needs to be either a rise in AD or a readjustment in prices and wages. Classical economists argue that a recession will only be temporary because labour and product markets are flexible. However Keynesians argue that wage and price rigidity can keep the economy below full capacity for a …
– Positive economics: based on facts and testable theories e.g. inflation is 2% – Normative economics: based on opinion – Opportunity cost: is the sacrifice foregone of the next best alternative – Demand curve will shift to the right if real incomes rise, price of substitute rises, price of complement falls, changes in taste Giffen …
Assess the extent to which governmentsts are likely to encounter difficulties when attempting to respond to economic shocks that affect economies such as Germany and the UK (30) Economic shocks are events which adversely affect the economy and the governments macro economic objectives such as growth, inflation, unemployment and the balance of payments. Economic …
There was reduction in the surplus on the current account of the French balance of Payments between 1998 and 2000. Essay Question: Using the data, assess whether this reflects a deterioration in the performance of the French economy. AQA (15) The current account measures the balance of trade in goods and service between France and …
Some of the supply side policies used in the UK during the 1980s and 1990s. 1. Privatisation. There has been an extensive privatisation campaign, most of the major utilities such as Gas , Water and Electricity were sold by the government and floated on the stock market. In some industries like telecommunications it has led …
European Union For AQA Unit 4 Origins of the EU Economic Integration Single Market What it involves Efficiency of the Single Market Common Agricultural Policy Reform of the CAP Expansion of the EU Monetary Union What it involves How it affects Monetary Policy Impact of European wide inflation targeting and interest policy Arguments for Against …