The Circular Flow of Income

1)What effect will the following have on the demand for UK-produced goods and servicesceteris paribus?

a) the Chancellor of the Exchequer, George Osborne increases taxes

b) there is an increase in interest rates

c) there is an increase in interest rates in Germany

d) additional spending on the National Health Service to reduce waiting lists

e) reduced spending on Child Benefit

f) Samsung builds a new factory in Scotland

2)In the UK, on the first Wednesday of each month the MPC meets to decide on interest rates. What is the MPC? What was latest decision that they took and what was the reason for it?

https://www.bankofengland.co.uk/about/people/monetary-policy-committee

If you don't live in the UK - is there an equivalent in your country?

3)State whether the following represent an injection into the circular flow of income or a withdrawal from it. You have to assume that "other things remain unchanged" (ceteris paribus)

a)a cut in taxes

b)BAe Systems (a defence contractor) receives a large order from abroad

c)central government spending on higher education is cut

d)retirement pensions are increased

4)In the UK in 1995 GDP at current prices was about 700 bn. In 2008 it was about 1400 bn. Which of the following statements are correct:-

a)people were twice as well off in 2008 as they had been thirteen years earlier.

b)the increase in living standards is of the order of 100%

c)it is impossible to say by how much living standards rose if one only has this information

d)on average and other things being equal we can say that people were spending twice as much as thirteen years previously.