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Specification:

  • Inflation, unemployment, economic growth, investment, productivity

Click to read the article below and then answer the questions:

Stagflation looms in UK as economic growth grinds to a halt

  • Define stagflation

  • The Phillips curve illustrates the trade-off between inflation and economic growth. Using a diagram, explain how Phillips curve analysis might be used to illustrate stagflation

  • With reference to chart 1, how long did it take the UK economy to recover to its pre-pandemic level?

  • Explain how surging inflation erodes households’ real incomes

  • ‘Boosting productivity through higher investment will be a crucial ingredient in containing cost pressures for businesses in light of surging wage bills.’ Evaluate whether UK business investment will recover to pre-pandemic levels any time soon

Gavin Clarke, Emmanuel College

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