The economy Micro vs. Macro economics

Question 1

What was the post war boom?

Answer 1

• Food rationing came to an end 1954
• Higher standard of living than ever before -
  with only 200000 people being unemployed by 1955
• Growth in affluence on a micro economic scale

Question 2

What was the problems with the economy?

Answer 2

• Trapped in cycle of stop go policies
• Growth in wages was outstripping the rate of production - brought inflation
• Inflation and taxation both remained high on a macro scale
• Balance of payments deficit - imports more than exports
• Run on the pound after the Suez Crisis
• Economic growth in Europe - Britain was falling behind - they seemed sluggish