Explain the main causes of inflation and explain how high inflation can influence both unemployment and GDP. Explain the options available in fiscal and monetary policies to reduce inflation and help improve the UK Economy

January 8, 2024January 8, 2024 Discipline: Economics

Case summary – 

The UK Economy has
had many problems over recent years culminating in the current weak economic
position. One of the ongoing issues is inflation and the consequences on the
economy from higher than planned levels of inflation. Unemployment levels are
not as good as planned and GDP is flat. A long period of stagnant growth is
forecast.

 –       
200 words – Discuss
inflation, define and explain, discuss data 

–       
300 words – discuss
how inflation has influenced Unemployment and GDP, discuss data  

–       
100 words – discuss
the main points of fiscal and monetary policies

–       
200 words – discuss
how fiscal and monetary policies could be used to improve both inflation, unemployment
and GDP.

·       Conclusion – you must include a clear conclusion summarising
your points (approximately 100 words)

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