Evaluation

Question 1

What is the 1st evaluation?

Answer 1

1) State of economy - high employment, consumer confidence. Decrease interest rates, higher inflation.

Question 2

What is second evaluation?

Answer 2

2) Time lags - interest rates can take 2 years.

Question 3

What is 3rd?

Answer 3

Depends on state of other variable, meaning an increase in investment could be from a decrease in consumer spending.

Question 4

What is the 4th?

Answer 4

Significance or factors - recession in europe , will effect UK more.

Question 5

What is 5th

Answer 5

Automatic stabilisers- something that happens immediately in economic growth/ down - unemployment rises for example.

Question 6

What is 6th?

Answer 6

Consider other macro policies
1) Sustainable economic growth
2) Minimising unemployment
3) Price stability - low inflation
4) Stable payments of balance on current account

Question 7

What is 7th?

Answer 7

Supply and demand side

Question 8

What is 8th?

Answer 8

Who benefits?
Intergenerational inequity - means increase in gov spending from future tex payers money

Question 9

What is the last?

Answer 9

Opp cost of gov funding with borrowing v tax.