Economics class: Stagflation looms in UK as economic growth grinds to a halt
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Inflation, unemployment, economic growth, investment, productivity
Click to read the article below and then answer the questions:
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