topics that have come up in the contexts: (25 marker)
importance of higher labour productivity
significance of household savings
inflation (linked to AD)
consumer expenditure
exchange rate (fall in exchange rate of pound)
measures for reducing unemployment (THIS QUESTION WOULD HAVE BEEN AN ABSOLUTE GOD SEND)
consequences of a fall in investment spending
policies to recover from recession
demand and supply-side policies to achieve economic growth
fiscal and monetary policies in maintaining a stable economy
importance of increase in exports
importance of supply side policies in helping control inflation
impact of cuts in public expenditure
extent to which external trade can be relied upon to bring about recovery
measures taken to reduce size of budget deficit (rise in unemployment?)
use of interest rates best way to control inflation
sustained recovery will inevitably lead to inflation
reduction in income tax is best way to improve performance (SR AND LR)
difficulties the government will encounter when attempting to boost rate of growth
significant increase in exports and reduction in imports
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all the above questions ask you in some way to link in to the performance of the UK economy- ( I PESONALLY THINK THESE ARE THE BEST SORT OF QUESTIONS, GIVES A LOVELY STRUCTURE TO YOUR ESSAY)
the ones highlighted in red do not ask you directly in the question about 'UK Macroeconomic performance'
but you may still have to write about this
it is helpful to go into the exam knowing:
whether we are on a trade deficit or surplus
rate of inflation
are we achieving growth
rate of unemployment
debt
budget deficit
interest rate