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A2 poverty

"Explain the likely economics effects of poverty on the UK." (15 marks)

I would start off by defining poverty and the 2 types (absolute and relative poverty)

But then what should I talk about? And specifically on the UK.
Please help? :wink:
Talk about the effects on the Budget deficit. AD shifting in > Potential Deflation/Increased unemployment > Lack of consumption as a negative multiplier > Government intervention > Expansionary Fiscal policy (or monetary) > Increased government spending (effects on budget deficit) > Increased inequality (market failure)

I'm sure there's a lot to talk about. Just take a moment to think about the question and realistically think of potential consequences of increased poverty and the chain reaction.
(edited 10 years ago)
Reply 2
Original post by Abdul-Karim
Talk about the effects on the Budget deficit. AD shifting in > Potential Deflation/Increased unemployment > Lack of consumption as a negative multiplier > Government intervention > Expansionary Fiscal policy (or monetary) > Increased government spending (effects on budget deficit) > Increased inequality (market failure)

I'm sure there's a lot to talk about. Just take a moment to think about the question and realistically think of potential consequences of increased poverty and the chain reaction.


So I should link it to Unit 2 economics?
Original post by queenfatso
So I should link it to Unit 2 economics?


It's all interlinked, regardless. I haven't covered this area as I too am doing a2 economics, but that link should suffice for the 15 marker I'd assume. You can add graphs too.
Reply 4
Original post by queenfatso
"Explain the likely economics effects of poverty on the UK." (15 marks)

I would start off by defining poverty and the 2 types (absolute and relative poverty)

But then what should I talk about? And specifically on the UK.
Please help? :wink:


I wouldn't focus on unit 2 too much.

You could think about wage differentials that may arise.
Reply 5
Original post by BC95
I wouldn't focus on unit 2 too much.

You could think about wage differentials that may arise.


Thank you :smile: I've written about that
Reply 6
Hahaha no wayy! Economics > Further Maths:wink:
I came into the thread thinking that there was an A level in poverty...

I was clearly wrong.

Posted from TSR Mobile
Original post by Eva.Gregoria
I came into the thread thinking that there was an A level in poverty...

I was clearly wrong.

Posted from TSR Mobile


Economics deals with poverty as a form of market failure though.

Increased Poverty > Increased government spending on JSA > Increased budget deficit > Decrease in Aggregate Demand in economy > Decreased Consumption/Business Investment > Increased Unemployment > Decreased national output > Decreased price level (possible malevolent deflation) > Increased Savings, cetarus parabus > Further reductions in price level > Lower interest rates but by then we're in a liquidity trap.

Moral of the story, give to charities to help tackle poverty.

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