UK economy

Question 1

Key macroeconomic objectives

Answer 1

• low inflation rates (2%)
• sustained growth of real GDP (national output)
• low unemployment/ high employmentt
• high average living standards
• balanced trade on the current account of the balance of payments
• achieve equitable/ balanced distribution of income and wealth

Question 2

Macro policy must consider some of the following external shocks…

Answer 2

Global financial crisis (GFC)
Euro zone economic crisis
China slow down

Question 3

Why does the uk lag behind on productivity?

Answer 3

• Low rate of new capital investment
• Skills shortages in key industries
• Banking crisis affecting lending to Bussiness who want to expand