Section 1: Chapter 2

Question 1

Key features of post-war boom? (6)

Answer 1

• Food rationing ended July 1954
• Baby boom: 1961= 51 million
• Sustained increase in overseas trade (global economy)
• Rising demand = full employment
• Economic growth = rising wages
• 1950s were years of optimism

Question 2

Stop-Go Policies (7)

Answer 2

Imports exceed exports & balance of payments issues —— Government controls —— Demand Falls —— Output increases ——— Controls remained —— Demand increases —— Rising imports

Question 3

Finance Crisis of 1957: Why? Thorneycroft? Ian McLeod? MacMillan?

Answer 3

1. Suez Crisis, America sold sterling so other countries did to
2. Monetarism
3. Expansionist economic policy
4. McLeod- Thorneycroft resigned

Question 4

Late 1950s Economic Developments

Answer 4

EEC rejection from DeGualle
Tory popularity improved drastically by 1959