Economics Developments 1951-64 Flashcards
1
Q
What is the stop go cycles?
A
Imports exceed exports -> high interest rates and wage freezes -> demand falls -> output decreases -> controls removed (interest down wages unfreeze) -> increase in demand -> imports rise
2
Q
When does rationing fully end?
A
1954
3
Q
How was Britain lagging behind other countries in industrial production in1959?
A
29% growth compared to Germany 125% growth
4
Q
In what ways was there a post war boom?
A
Consumer goods more accessible
Reductions in purchase tax
Population increase 2 million 1951-61
Most people can take a two week holiday
5
Q
What other factors helped the economy apart from the conservatives?
A
Cheap oil - industry boom Only 1.6% unemployed (full employment) Lots of rebuilding jobs available Developing countries buy British exports Marshall aid Technological developments
