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Economic Cycle The UK Economy. By the end of this section of work, you will: Must know the nature of economic growth.Must know the nature of economic.

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Presentation on theme: "Economic Cycle The UK Economy. By the end of this section of work, you will: Must know the nature of economic growth.Must know the nature of economic."— Presentation transcript:

1 Economic Cycle The UK Economy

2 By the end of this section of work, you will: Must know the nature of economic growth.Must know the nature of economic growth. Must understand why a positive output gap creates inflationary pressure.Must understand why a positive output gap creates inflationary pressure. Should understand the causes of economic growth.Should understand the causes of economic growth. Could be able to evaluate the UK economy’s potential for growth at the present time.Could be able to evaluate the UK economy’s potential for growth at the present time.

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5 AD-AS and the Output Gap

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7 Put these in the correct order

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14 Stimulating Demand and Jobs Put these in the correct order

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16 By the end of this section of work, you will: Must know the nature of economic growth.Must know the nature of economic growth. Must understand why a positive output gap creates inflationary pressure.Must understand why a positive output gap creates inflationary pressure. Should understand the causes of economic growth.Should understand the causes of economic growth. Could be able to evaluate the UK economy’s potential for growth at the present time.Could be able to evaluate the UK economy’s potential for growth at the present time.


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