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Illustrate the problem for UK economic performance
This is a foremost problem for UK economic performance and helps elucidate the persistent deficit on the current account of balance of payments. UK has been a net importer of goods for many decades and though the UK has a strong service sector, British households have become dependent on imported goods. The main problem facing the UK is large current account shortages which have been incurred since 2000 have been financed by borrowing from emerging-market nations specifically China. This is not a maintainable position. If China were suddenly to decide to sell its holdings of financial assets, denominated in sterling that it has accumulated because of financing the UK's imports from China, the £'s exchange rate would go into free-fall. Though this would make Britain's exports more price competitive in the short run at least UK inflation would rise dramatically, unemployment will grow and standards of living will fall.
National Product and Domestic Product A modern economy produces literally thousands of different goods and services. Some of these goods and services such as rice, wheat, shir
give and explain national income variation
ABSOLUTE ADVANTAGE
There are many ways to measure the national income. a) List at least 5 of themk question #Minimum 100 words accepted#
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Why is it important for policymakers to consider both the direct and indirect effects of public policies?
At first, it may seem obvious that consumption will rely on Y. If GDP is doubled in real terms over a number of years, government consumption, private consumption and investment wi
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