Uk economy Application Flashcards
wWhat is the uk government target inflation rate
around 2%
what is the uk unemployment rate - 2024 march
3.8%
what is the uk target unemployment rate
equilibrium around 6.5%
What was the UK economic inactivity rate between November 2023 and January 2024
was 21.8% between November and January
How does this compare to pre pandemic levels
700,000 higher
what is the uk economic inactivity rate in 2023
22%,
more than one in 5 adults of working age economically inactive
economic inactivity stats
more than one in 5 adults of working age economically inactive
economic inactivity stats
9.2 million people
700,000 higher compared to pre pandemic
What must you do in COR paragraph
include application.
Example of expansionary fiscal policy in uk economy
In 2009 in response to a deep recession (GDP fell 6%) the government cut VAT in a bid to boost consumer spending. This caused a big rise in government borrowing (2009-10). (Government borrowing also rose because of the recession leading to lower tax revenue)
Story about AI productivity
Soar in productivity of jobs requiring AI with employers offering up to 14% higher wages for jobs using AI.
Why did bOE keep interest rate at level for so long
bank kept interest rates at 5.25% for so long because if worry of wage growth causing demand pull inflation
How does the Uk’s government national insurance tax cuts work
The main rate of Employee National Insurance tax will be cut by 2p for every £1 you earn from 6 January 2024.
UK economy growth jan to march 2024
0.6% increase
