Stop-Go Economics Definition Flashcards
1
Q
What is the Go phase? What increases?
A
Economic boom with high exports and rising imports
2
Q
What is the stop phase?Inflation happens meaning imports have to fall and output decreases
A
Inflation happens meaning imports have to fall and output decreases
3
Q
What starts the ‘go’ phase again?
A
Controls on imports removed
4
Q
Why did the 1951-64 Conservatives suffer with Stop-Go economics a lot?
A
They tried to implement a mixed economy to Britain
5
Q
What was the impact of continuous stop-go phases?
A
Short term affluence at the expense of maintaining the economy
