Posted: September 22nd, 2015

separate effects on GDP, inflation and public sector borrowing on any single national economy

AS/AD framework
1. Use the AS/AD framework to show the separate effects on GDP, inflation and public sector borrowing on any single national economy of:
a decrease in public infrastructure spending by the government
a slowdown in the growth of world trade
a fall in labour productivity (GDP per person hour).
Make sure that you include clear and appropriate diagrams for this question.

2. Using appropriate theoretical models show the effect in a single named economy of a reduction in the global price of oil/energy. Use relevant empirical evidence in your answer.

The guide TOTAL word limit (for both Questions 1 and 2 inclusive) is 2,000 words.

 

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