UK Context (25 Marker)

Question 1

UK base rate

Answer 1

5.25% as of 26/3/24

Question 2

Interest rates since 2007

Question 3

Current rate of UK inflation

Answer 3

3.4% as of 26/3/24

Question 4

UK inflation over past 5 years

Question 5

UK unemployment over past 10 years

Answer 5

Unemployment was decreasing between 2015 and 2019
Remained the same between 2019 and 2020

Question 6

Level of regulation in UK labour markets

Answer 6

UK labour markets are generally quite deregulated compared to most Euro countries. It is harder for unions to strike and easier for firms to get rid of workers they don’t want.

Question 7

UK growth of past 10 years

Answer 7

There has been very little economic growth since the Great Recession (aka ‘Credit Crunch’) Most of the limited growth the UK has seen is due to immigration. In other words we have seen an increase in population and therefore an increase in output but NOT much increase in productivity and therefore real median income has not grown much at all.
This chart show the UK growth rate ( a massive dip from covid and then a bounce back).

Question 8

UK median income over past 10 years