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  • Inflation, fiscal policy, AD & AS

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

Boris Johnson makes boosting economic growth his top priority

  • With regard to cutting income tax, ‘Sunak has warned of the dangers of pouring fuel on an inflationary fire.’ Outline the chancellor’s concerns

  • Explain why the prime minister and the chancellor agree that personal tax cuts cannot be funded by more borrowing

  • Explain why it is ‘impossible to meet all of the desires of Conservative MPs for strong public finances, tax cuts, higher living standards, and low borrowing costs’

Gavin Clarke, Emmanuel College

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