Wednesday, July 09, 2008

Unit 3: Is the UK heading for recession?

This BBC clip questions whether the UK is heading for a recession

http://news.bbc.co.uk/1/hi/business/7495183.stm

a) What is a recession?
b) What happens to aggregate demand in a recession?
c) Why does unemployment rise in a recession?
d) What effect does rising unemployment have in the economy?
e) What actions could the government take to break this downward spiral?

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