Thursday , December 2 2021

Economy Class: Switch to value propositions to prepare for inflation



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This article selected by a teacher with suggested questions is part of the Financial Times School Access Program. Details / registration right here.

Specification:

Click to read the article below and then answer the questions:

  • Difference between gross domestic product (GDP) and gross national product (GDP)

  • ‘Tax revenues will follow (GDP growth).’ Using a diagram, explain the caused nature of tax revenue

  • ‘Once government debt exceeds 77 percent of GDP, each additional percentage point reduces the real annual GDP growth by 0.017 points.’ Calculating the potential hit on UK GDP, given the UK’s debt-to-GDP ratio 106 per cent

  • ‘The UK government is currently subsidizing the wages of the low paid through the universal credit system – in July this year, 5.9 million people claimed benefits in this way. ‘Explain how universal credit acts as a subsidy

  • Evaluate the extent to which economic agents benefit from rising inflation.

Gavin Clarke, Emmanuel College

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