Chapter 2 (1)

Question 1

GNP

Answer 1

Growth National Product- value of all goods and services produced by a nation’s economy domestically and abroad

Question 2

GDP

Answer 2

Gross Domestic Product- Value of all goods and services produced domestically within the country’s boarders

Question 3

Stagflation

Answer 3

Economic stagnation and inflation. No economic growth but there is inflation and also sometimes more unemployment. First used in the 1960’s but is used to describe the 1950’s

Question 4

Butskellism

Answer 4

Coined by Economist 1954 to describe the economic approaches of Labour Chancellor Gaitskell and Conservative Chancellor Butler. Continuation of approach to economic policies in line with the post war consensus (Keynesian)

Question 5

Successes of economic policy under Conservatives

Answer 5

500% increase in car ownership
Proposed to build 300,000 new homes but actually built 354,000 in 1954
1951- 4% owned a TV by 1964 it was 91%
Home ownership increased from 25% to 44% (1964)
Far less days lost to strike action than the rest of Europe
Increase in credit and borrowing
Wages rose faster than prices
April 1959 budget: £370million in tax cuts
Britains growth rate under Maudling rose from 4% (1963) to 6% (1964)

Question 6

Beeching report

Answer 6

1963
Report recommended massive cuts in the rail network
Caused more rural areas to be isolated
30% of Britains rail network was closed
Thousands of stations were axed

Question 7

Failures of economic policies under the Conservatives

Answer 7

Stuck in a reactionary ‘stop-go’ loop
Did not invest in future industrial growth: 34.5% of funds for research and development went to defence