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This report will highlight how Government policy could change to try to: Increase economic growth, Reduce unemployment, Reduce the Balance of Payments deficit, Reduce the inflation to 2.5%.
Member rating: No Rating | Words: | Submitted: Mon Dec 22 2003
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ANGLIA POLYTECHNIC UNIVERSITY ASHCROFT INTERNATIONAL BUSINESS SCHOOL BUSINESS STUDIES SET SEMESTER 2 MODULE NAME: MACRO ECONOMICS Student Name: Gwyneth Morris-Alexander Student Number: 0272195 To: Chancellor of the Exchequer From: Gwyneth Morris-Alexander Subject: Report on the Economy Date: May 10 2003 Dear Sir, The following report is based on the information stated as it relates to the topics indicated:> Inflation is 3% and the stated aim of Government is 2.5%.> Unemployment is 8%.........the Natural Rate is estimated to be 5%.> The Balance of Trade is in significant deficit.> The Marginal Propensity to Import is 0.5.> The Marginal Propensity to spend is 0.8.> There is presently a Budget Surplus of £2bn. This report will highlight how Government policy could change to try to: * Increase economic growth * Reduce unemployment * Reduce the Balance of Payments deficit * Reduce the inflation to 2.5% We must, however, first take note that there are different approaches to economics. The Keynesian Approach believes that the active use of monetary and...
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