whats happening now

Question 1

uk fiscal policy

Answer 1

• currently in a contractionary fiscal policy since covid but gov spending higher than expected (not honouring rules) —> expected taxes will have to rise to facilitate this

Question 2

inflation and ir

Answer 2

from 2.6 to 3.5 more recently & ir expected to fall slower than expected

Question 3

tax

Answer 3

as speculated, taxes are rising as the govb continues to spend —> passed onto consumers via higher prices (water bills)