Questions on global economic problems

Global problems

Question 1

1. Analyse the likely impact on the UK economy, or an economy of your choice, of an increase in government spending on higher education.
2. What are automatic stabilisers and how do they work?
3. What are the main disadvantages of an increase in income tax, assuming the economy has an output gap?
4. What are the main disadvantages of an increase in government spending not matched by an increase in taxation?