Economic context Flashcards
1
Q
How will fracking fulfil all 5 macroeconomic goals?
A
(T)Improve trade balance (I)Maintain low commodity inflation (G)Growth (E)Employment (R)Progressive subsidy for households
2
Q
Trade balance
A
Reduce M/ Increase X
3
Q
Inflation
A
Maintain low commodity inflation and prevent fluctuations in price level
4
Q
Growth
A
Shift supply right, payments to communities provide multiplier effect
5
Q
Employment
A
Job creation of 74,000 jobs
6
Q
Redistribution of income
A
As cut gas prices act as subsidy on low income households
7
Q
Influence of austerity
A
Fracking= potential tax revenue and fiscal stimulus despite austerity of £3.5bn investment
8
Q
Manufacturing sector
A
Cheap commodity pricing could revive domestic infrastructure improving -£10.3bn trade balance on visibles and save further 20,000 job losses
9
Q
2 potential losers
A
Property owners could see value of home fall
Tourism dependent areas
