Class Discussion:

Imagine, that the government of UK invited you as an expert of the World Bank to analyze current economic policy and help to find the ways of economic growth (or solving long-term problems such as budget deficit, high rate of unemployment, deficit of trade balance). Please include a detailed report of answers, data, graphs, explanations, and resources.

According to the selected country you need to research and answer the following questions (with numbers and examples):

ECONOMIC POLICY:

1. What are the key problems of UK economy? (economic recession / depression, budget deficit, high rate of unemployment, deficit of trade balance, structure of GDP etc.). Why these problems appeared? Why they couldn't be solved before? (take a look at UK GDP data for 1945-1960 [post WW2] and decide which period of economic cycle it probably could be for this UK economy)
2. Research and find out, what are the cyclical problems of this UK economy and what are the structural problems of the economy and state budget. Find out at least four main problems.
3. What are the key characteristics of UK economy? What do you need to consider while preparing suggestions for fiscal policy? Hidden economy, standard of living, distribution of income, why do we need to consider these factors before we make decisions about the fiscal policy?