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Olatunde Osikoya

Section B: Data Response ­ Context 1.

Question 1.

The economic cycle is defined as the natural fluctuation of national and global economic activity
between periods of boom, recession, slump and recovery. Factors such as GDP, interest rates, levels
of employment, investment and consumption help determine each stage…

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Olatunde Osikoya

Question 4.
Extract C suggest that as the pace of the recovery quickens, a further increase in inflation is
inevitable. A sustained recovery in the UK economy can be defined as a sustained period of
increasing economic activity with signals the end of a recession. Factors that determine…

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Olatunde Osikoya

Extract B states that the expansionary policies pursued by the government around the world were
the underlying cause for an increase in demand, which led to an increase in the inflation rate.

This basically means that expansionary policies such as an increase in government expenditure have
increased aggregate…

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Olatunde Osikoya

pound stronger. By doing this imports would be cheaper for British firms who rely on them and
therefore in turn their costs of production and therefore prices will also be lower, although this may
also increase AD in the economy as consumers have increased purchasing power. This actually…


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