macro real world examples

Question 1

what was the base rate in 2021 compared to 2025?

set by the bank of england

interest rates

Answer 1

2021 - 0.1%
2023 - 5.25%

control high levels of inflation, reduced AD

Question 2

how much did the BOE spend on govt bonds during and after Covid 19?

monetary

Answer 2

£895 billion

increased money supply, increases commercial bank reserves

however, low investor confidence limits impact on AD

Question 3

how much did the government spend on furlough schemes during the pandemic?

fiscal

Answer 3

£70 billion

reduced unemployment, automatic stabliser, higher govt borrowing

Question 4

what % of gdp does the government spend on education?

Answer 4

4-5%

Question 5

who is the worlds largest exporter?

Answer 5

China - joined WTO in 2001

many firms in UK rely on asian imports (x rates, cost push inflation)

Question 6

how much did the pound depreciate by after brexit?

Answer 6

15%

Question 7

how much did the gdp fall by in 2020?

Answer 7

9.3% (pandemic)

Question 8

how much was inflation in 2022?

Answer 8

11.1%

Question 9

what happened to energy prices as a result of russia invading ukraine?

Answer 9

they surged
1. sras shifted left
2. cost push inflation

Question 10

give 3 factors limiting economic growth in the UK

Answer 10

1. low productivity
2. low investment
3. poor infrastructure