UK economy grows at slowest annual rate in a decade.

Questions:

  • Explain why the U.K. economy is not in a recession.
  • If a fiscal boost is not forthcoming, why might the Bank of England be “inclined to cut interest rates”?
  • What fiscal policies could the U.K. government undertake?
  • Draw a graph to illustrate the effects of expansionary fiscal policy on the U.K. economy.

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