Macro Policy Flashcards
(6 cards)
1
Q
A nice way to think abt demand side policy
A
Smoothing out the economic cycle.
2
Q
How long has gov had a budget deficit for? and what is debt as % of GDP? How may this impact the economy?
A
over 25 years and around 100%. If Debt too high borrowing may become more expensive, which may increase interest rates, reducing consumption and investment.
3
Q
What % of gov spending was benefits in 2023/2024
A
21.6%
4
Q
What is the current interest rate
A
4.5%
5
Q
What is £ $ exchange rate now vs 2014
A
2014 - £1:$1.70
2025 - £1:$1.30
6
Q
A
