Essay plan
Define Monetary policy (Bank of England's monthly MPC meetings setting interest rates to target inflation.
Define Fiscal Policy (Government's annual budget setting the level of Government expenditure and Tax Revenue) Also Micro fiscal policy e.g cutting benefits.
EVALUATE 3 CONFLICTS
Phillips curve: High interest rates - AD diagram - low inflation v high unemployment; however current data - low inflation/low unemployment (wage cuts rather than job losses), supply side shocks - oil.
UK's Trade deficit grows with increased Growth - however supply side policies (UK productivity - training), recession in export market (EU), impact of value of pound WIDEC.
Kuznets curve: Inequality/Pollution - increases with growth - however decreases at advanced stages, depends on what else is changing - government priority.
Benefit cuts reducing unemployment but increasing poverty - however scope how many affected, how alrge are the benefit cuts, income tax cuts, minimum wage.
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