On March 23rd 2020, the UK entered into the first lockdown restricting business activities in several sectors of the economy. One year later, the U.K. Chancellor announced the new budget for 2021 incorporating tax cuts and increases in government spending such as extensions to the furlough scheme. Explain the economic rationale behind these policies and discuss their effectiveness.
On March 23rd 2020, the UK entered into the first lockdown restricting business activities in several sectors of the economy. One year later, the U.K. Chancellor announced the new budget for 2021 incorporating tax cuts and increases in government spending such as extensions to the furlough scheme. Explain the economic rationale behind these policies and discuss their effectiveness.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Can you help me with part b please.
Thanks!
![In March 2020, the World Health Organization declared the new coronavirus outbreak as a
pandemic. Many policy makers around the world have started worrying about the economic
impact of the pandemic. The immediate effects were through travel restrictions in a few
countries and isolation of those who were infected.
On March 10th 2020, the Bank of England announced an emergency cut of
its interest rate. Explain the economic rationale behind this policy and its limitations.
In your answer discuss expected effects on economic variables such as GDP,
consumption, investment, net export and unemployment.
On March 23rd 2020, the UK entered into the first lockdown restricting
business activities in several sectors of the economy.. One year later, the U.K.
Chancellor announced the new budget for 2021 incorporating tax cuts and increases
in government spending such as extensions to the furlough scheme. Explain the
economic rationale behind these policies and discuss their effectiveness.
Explain how the discovery of a vaccine for Coronavirus can generate an
economic recovery based on the Keynesian theory. In your answer focus on
discussing the effects on macroeconomic variables such as GDP, investment, wages
and unemployment.
The U.K. GDP has declined by 10% during 2020, compared to a 4% decline
during the Financial Crisis in 2009. Some economists argue that the difference in
actual aggregate economic activities may be smaller than what the numbers
suggest. Explain their argument.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc4dc3cd9-ea24-4522-b452-bb2baeeecaad%2F709846c9-3cf9-455a-93fd-ddd3df28132c%2Fqs8ss9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In March 2020, the World Health Organization declared the new coronavirus outbreak as a
pandemic. Many policy makers around the world have started worrying about the economic
impact of the pandemic. The immediate effects were through travel restrictions in a few
countries and isolation of those who were infected.
On March 10th 2020, the Bank of England announced an emergency cut of
its interest rate. Explain the economic rationale behind this policy and its limitations.
In your answer discuss expected effects on economic variables such as GDP,
consumption, investment, net export and unemployment.
On March 23rd 2020, the UK entered into the first lockdown restricting
business activities in several sectors of the economy.. One year later, the U.K.
Chancellor announced the new budget for 2021 incorporating tax cuts and increases
in government spending such as extensions to the furlough scheme. Explain the
economic rationale behind these policies and discuss their effectiveness.
Explain how the discovery of a vaccine for Coronavirus can generate an
economic recovery based on the Keynesian theory. In your answer focus on
discussing the effects on macroeconomic variables such as GDP, investment, wages
and unemployment.
The U.K. GDP has declined by 10% during 2020, compared to a 4% decline
during the Financial Crisis in 2009. Some economists argue that the difference in
actual aggregate economic activities may be smaller than what the numbers
suggest. Explain their argument.
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