Contextual examples for macro Flashcards
What is a CE of low interest rates?
Governments have responded to the COVID-19 by drastically reducing interest rates, in order to cope with the lack of demand and investment in the global economy
What is a CE for corporation tax decreasing?
In the UK, it decreased by 9% from 2010 to 2019, which in theory would shift the LRAS curve to the right by stimulating more investment, however this was delayed by uncertainty in from Brexit and the US-China trade war
What did Boris Johnson promise in 2019?
A triple tax lock that would mean VAT, income tax and National Insurance Contributions would not rise under his conservative rule- he achieved this promise and all taxes have stayed the same other than NICs which have decreased
What happened in Greece during their European debt crisis?
Greece was forced to cut spending and raise taxes to deal with their national debt- increasing unemployment and decreasing economic growth by 25%
How much did the UK gov spend on improving schools in 2019?
£400 million
