Unit 3: Conflicting macroeconomic objectives: The current position of the UK

This BBC clip outlines the position of inflation, unemployment and economic growth in the UK economy

http://news.bbc.co.uk/1/hi/business/7400775.stm video

This is Mervyn Kings statement about the outlook for inflation; not very rosy to say the least!

http://news.bbc.co.uk/1/hi/business/7400402.stm video
http://news.bbc.co.uk/1/hi/business/7400074.stm article and analysis

Unemployment has also risen

http://news.bbc.co.uk/1/hi/business/7400306.stm video
http://news.bbc.co.uk/1/hi/business/7400079.stm article

a) What is happening to the macroeconomic objectives of economic growth, inflation and unemployment?
b) What is the conflict between the position of these objectives for the BoE in setting interest rates?