Context

Question 1

Low ir

Answer 1

China in 2023
Japan -0.1% for a while but now is 0-0.1% - due to low business confidence no I

Question 2

High ir

Answer 2

Turkey due to inflation and wpidec to beyond 40%
Argentina beyond 100% due to recession and inflation
Uk and USA increased during 2022 and 23 rapidly

Question 3

High consumer confidence

Answer 3

India on par with pre pandemic levels
UAE and Qatar due to high oil p

Question 4

Low consumer confidence

Answer 4

Eurozone and uk due to Covid

Question 5

High asset p

Answer 5

Uk with house p rises

Question 6

Low asset p

Answer 6

Uk and us stocks in march 2020

Question 7

Household indebtedness

Answer 7

Germany low as they spend mainly from savings
Uk and USA high as they are reliant on credit

Question 8

Real disposable income

Answer 8

India has high due to quick Covid recovery
Uk and eurozone low due to high inflation

Question 9

Low Y tax

Answer 9

USA reducing rates and increasing in line with inflation to prevent fiscal drag
Uk increasing tax free allowance and 40% y threshold and reducing top tax band from 50 to 45% and national insurance cut

Question 10

High y tax

Answer 10

Scotland increasing y tax - large discrepancy in band rates may cause unintended consequences
France’s millionaires tax of 75% being voided due to people leaving and voicing disinterest in coming and trouble attracting talented workers from abroad
Uk reducing highest tax hand threshold and freezing other tax bands till 2028 (fiscal drag)

Question 11

Low business confidence

Answer 11

Uk due to brexit (supply chain disruption, trade friction, uncertainty) inflation and Covid

Eurozone due to inflation and high energy costs with low consumer demand

USA high costs of living and threat of recession

All could recover in 2024 due to lower inflation, easing of energy crisis and general improvement in economic outlook

Question 12

Low corporation tax

Answer 12

Uk cut from 28 to 19%
Us cut from 35 to 21%
Ireland at 12.5% attracts lots of fdi

Question 13

High corporation tax

Answer 13

France at 31% to fund budget deficit and high debt levels
Uk increase from 19 to 25% to raise revenue and remove debt from Covid and energy crisis

Question 14

Gov spending

Answer 14

France Germany uk USA japan released packages for households and business for Covid

Question 15

Austerity

Answer 15

2010 to 2019 uk cutting funding to councils police defence and welfare

Question 16

Weak ex rate

Answer 16

Uk pound
Japan yen

Question 17

Strong ex rate

Answer 17

Us dollar

Question 18

Sras

Answer 18

Increased in 2022 23 due to oil gas electric rises so sras left

Germany cut vat rate reducing business costs in 2020
Uk reducing vat for hospitality in 2020

Uk annual w growth peaking at 8% 2023

Question 19

Recession

Answer 19

D side
Covid
Financial crisis

S side
Germany 2023 due to high oil energy and food prices due to russia Ukraine

Question 20

Problems with gdp as a measure of growth

Answer 20

Informal sectors in Italy and Greece
Pollution in India and china
Malaysia deforestation

Question 21

Problems with cpi as a measure of inflation uk

Answer 21

Shrinkflation (Kit Kats snickers twix) have become smaller in size but at the same p so not taken into account by inflation figures
Too slow (hand sanitiser and video conferencing software entered in 2021 march)

Question 22

Cyclical u

Answer 22

Covid

Question 23

D pull inflation

Answer 23

Strong economic growth uk usa 2021

Question 24

C push inflation

Answer 24

Oil energy and food prices exacerbated by Russia Ukraine war

Question 25

Bad deflation

Answer 25

Japan

Question 26

Good deflation

Answer 26

Uk eurozone 2015 16

Question 27

Expansionary monetary and fiscal policy

Answer 27

Uk Covid reduced ir from 0.75 to 0.1% and qe Ir were already low so didn’t rlly help More qe helped Low consumer and business confidence halted growth Large increase in money supply may have caused the high inflation Japan negative ir

Question 28

Contractionary monetary policy

Answer 28

Uk and USA 2022 23 Didn’t really help as inflation was due to s side issues (p of oil energy and food) that monetary policy doesn’t directly target

Question 29

Contractionary fiscal policy

Answer 29

Uk austerity cutting g Tax rises in uk increasing t

Question 30

Ssps

Answer 30

Uk 2019 Investment tax free allowance increased Cutting corporation tax to increase rp Increasing y tax free allowance to encourage inactive into work and raise productivity Apprenticeship levy Curriculum changes Real increase in nhs budget 30 hours gov funded childcare per week National roads fund Hs2 5G Deregulation Cutting planning permission

Question 31

Protectionism

Answer 31

USA china trade war China accused of illegal dumping, currency manipulation, tariffs. Destruction of us jobs and industries Raising and increasing breadth of tariffs Tariff retaliation esp on sensitive goods in republican swing states Eu russia bilateral sanctions

Question 32

Free trade

Answer 32

Uk eu free trade deal

Question 33

Lack of international competitiveness in uk due to

Answer 33

High ulcs due to high wmin and low productivity Low I