A recession is a period of negative economic growth. In a recession, we see falling real GDP, falling average incomes and rising unemployment. This graph shows US economic growth 2001-2016. The period 2008-09 shows the deep recession, where real GDP fell sharply. Other things we are likely to see in a recession 1. Unemployment The …
Readers Question. Can Labour be blamed for the economic crisis (i.e. did they really ‘overspend’)? My view is that the global economic crisis is to blame, and that Labour could have spent less but that this is easy to say with the benefit of hindsight. I don’t think there is any economist who would try …
In 1967, the UK government of Harold Wilson devalued the Pound from $2.80 to $2.40 (a devaluation of 14%). It was a major political event because the government had tried hard to avoid a devaluation, but felt forced into the decision because of a trade deficit, a weak domestic economy and external pressures from creditors. …
A look at the benefits and costs of capital flows.
A few selected AS macroeconomic essay questions – with suggested answers. Q.1 Evaluate policies that the government can use to increase the rate of economic growth. Q.2 Discuss the importance of supply-side policies in improving the performance of the UK economy? Q.3 Explain Causes of Inflation Q.4 Explain the reasons for the changes in unemployment in …
Definition The Balance of Payments shows a countries transactions with the rest of the world. It notes inflows and outflows of money and categorises them into different sections. The two sections of the Balance of Payments are: Current Account. – Trade in goods/services/investment incomes/transfers) Financial (Capital) account. – Foreign direct investment, capital flows, portfolio investment Balance …
