In each of the following questions, assume that the economy is in equilibrium at X. Identify the new equilibrium following the changes given below:
Consumer confidence rises.
There is better use of new technology leading to cost efficiencies by UK firms.
There is a downturn in UK exports to Europe.
There is a rise in household savings.
Interest rates fall.
Consumer confidence falls triggering a fall in business confidence.
Oil prices rise, and at the same time unemployment falls.
There is a general rise in business taxes, and a rise in imports relative to exports.
Government spending on education rises.
Banks reduce their lending to households and firms reduce their investment in new technology.