Sunday, January 23, 2011

Unit 2: Why is UK inflation so high?

A fascinating clip from the BBC Daily politics programme about why UK infaltion is comparatively high and whether interst rates should rise

and Ch4

a) Why is the UK inflation rate so high?
b) What sort of inflation is the UK therfore experiecing?
c) Draw an AS/AD diagram to show how this inflation occurs
d) Comment on the extent to which increasing interest rates would decrease the UK inflation rate

No comments: