*5 The economy is experiencing inflation of 10 per cent a year and unemployment of 7 per cent. Real GDP growth has sagged to 1 per cent a year. The stock market has crashed. a Explain how the economy might have got into its current state. b Set out policies for the Bank of England and the government to pursue that will lower inflation, lower unemployment and speed real GDP growth. c Explain how and why your proposed policies will work.