UK economy

Question 1

economic shocks impacting UK

Answer 1

• Great financial crash (GFC)
• Brexit
• Covid-19
• Ukraine war
• Industrial revolution

Question 2

Great financial crash key points

Answer 2

• started 2008
• many large commercial banks collapsed
• banking and housing crisis
• took until 2012 to return to pre 2008 GDP in UK
• slow/low economic growth since GFC (below 2% target)
• high debt levels due to bank bailouts

Question 3

Brexit key points

Answer 3

• vote happened in June 2016
• UK formally left EU in December 2020
• reduction of trade with EU leading to 4% reduction in GDP

Question 4

Covid-19 key points

Answer 4

• UK schools closed in march 2020
• global lockdowns led to a supply shock with effects including: long waiting times for NHS, reduction in labour force, businesses closing down, higher national debt, rise in inflation and higher interest rates
• high debt levels from support schemes has led to reduction in public services (austerity)

Question 5

Ukraine war key points

Answer 5

• started February 2022 to present
• energy price shock (electricity, petrol) increasing the cost of production and transport of goods for businesses
• pushed up inflation

Question 6

Industrial revolution key points

Answer 6

• happened in 1850s
• positive effect by increased employment, and improved living standards
• however led to higher income inequality