Analysis of the Autumn Statement

AS level students who have studied AD, AS and macroeconomic equilibrium should be in a position to carry out an economic analysis of today’s Autumn Statement. Here is a suggested assignment, which borrows from the focus on ‘connectives’ in the Business Workshops this week to help to build a strong chain of argument.

Please open this BBC webpage which summarises the Chancellor’s Autumn Statement which was announced on Tuesday.

You should read it carefully, and open any of the links which will give you more background to it or views about the measures announced.

One of the macroeconomic objectives here is growth. Please consider the effect of each measure announced on macroeconomic equilibrium and real GDP.
Analysis of the Autumn Statement
Choose three measures which you think will have an effect on AD. Write an explanation of the reasons for your choices and consequences it may have, including a graph and at least two of the following words or phrases in each explanation:
this might mean…..
this is because…...
which in turn…..
therefore…..
a consequence of this might be…...
on the other hand…...
as a result…..
however…..
leading to…..
Please end this analysis with an assessment of which you think will be most effective in achieving the objective and why.

Repeat the analysis with 3 measures which will affect SRAS and three which will affect LRAS.

Finally please decide which of the measures you think will have the most significant effect on the economy. Describe why that is your choice and what economic conditions will be needed for it to be successful.