Acrux
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How would you go about answering this question is there a structure i could follow

0 4 Extract C (lines 1 and 2) states: ‘The weak recovery of the UK economy has led to
renewed demands for a boost to investment in the infrastructure of the UK economy.’
Using the data and your economic knowledge, assess the likely consequences of
increased spending on infrastructure for the performance of the UK economy.
[25 marks]

Any thoughts on the diagram and definitions?
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Liamnut
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Define investment if you want but for 25 markers, which it sounds like, I would swing more to explaining the current state of the economy and showing you understand the context in your intro.

-Benerfits for demand side. E.G Increase in I => increase in AD => increase in employment => increase C

-Why might this nor improve the performance? It could lead to demand pull inflation.

-Benerfts for the supply side.

-Why might this not improve the supply side? You could say demand needs to pick up before we worry about creating more excess productive capacity

Come to a conclusion. You could say the supply side improvements will offset inflationary risks.

Remember that performance is generally measured by inflation, GDP, unemployment and the BOP, so think about what effects the demand side and supply side changes will have on these.


(Original post by Acrux)
How would you go about answering this question is there a structure i could follow

0 4 Extract C (lines 1 and 2) states: ‘The weak recovery of the UK economy has led to
renewed demands for a boost to investment in the infrastructure of the UK economy.’
Using the data and your economic knowledge, assess the likely consequences of
increased spending on infrastructure for the performance of the UK economy.
[25 marks]

Any thoughts on the diagram and definitions?
0
reply
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