UK Facts

Question 1

Growth

Answer 1

7.4% 2021

Question 2

Output gap

Answer 2

+0.7%

Question 3

GDp/Capita

Answer 3

31,400

Question 4

Total GDP

Answer 4

2.4Tn

Question 5

Makeup of GDP

Answer 5

Services 79%
Manufacturing 14*
Construction 6%
Agriculture 1%

Question 6

Unemployment

Answer 6

4.2% 2021

Question 7

Employment

Answer 7

75.5%

Question 8

Wage growth

Answer 8

4.3%

Question 9

Inflation

Answer 9

Reached 5.5% expected above 8%

Question 10

Real income per capita

Answer 10

$43,000

Question 11

Fiscal deficit

Answer 11

11.9%

Question 12

National debt

Answer 12

Above £2tn - 100% of GDP

Question 13

Corporation tax

Answer 13

rising to 23%

Question 14

Interest

Answer 14

0.5%

Question 15

Minimum wage

Answer 15

£9.50

Question 16

Quantitative easing

Answer 16

£895bn in total

Question 17

Monetary policy UK

Answer 17

Before COVID

• Interest down to 0.1%
• QE £450bn project, £895bn total

However 9% CPI so inflation

After COVID

• Higher interest to 1%
• Quantitative tightening to reduce inflation, household debt and sustainable growth and encourage saving

Demand side shock, impact on indebted, investment

Question 18

Fiscal policy UK

Answer 18

• Wage subsidies
• Cheque to NHS
• Spending on welfare

VAT cuts
Business rate exemptions

Why?
-Growth, less unemployment, avoid deflation encourage inflation

However

• Budget deficit 14% of GDP debt 100% of GDP
• Inflation 9%

Question 19

Components of AD

Answer 19

Consumption - 60-65 - 63%

G - 18%

I - 17%

Net deficit - -1-4%