Q1) Explain how contractionary monetary policy through higher interest rates might affect your business.

Q2)Evaluate the likely impact on your business of the following government budget measures:

i)increases inincome taxand VAT :

ii)cuts in government expenditure (e.g. funding) on schools and colleges

Q3) Suppose you work as an Economist advising the Chancellor of the Exchequer on fiscal policy. Suggest some appropriate measures the Chancellor of the Exchequer should include in the next budget to help businesses.

Q4) Suppose you have also started to successfully export your tables abroad.Evaluate the effects on your business of higher unemployment in the UK and abroad.

Q5) Now, imagine that apart from exporting tables to the EU, you also buy a lot of raw materials used in the manufacture of tables (e.g. wood) from EU countries.Discuss the effects on your business sales and costs of an increase in the value of the Pound against the Euro.

Q6) Collect and plot data on unemployment in the UK for the last 10 years and briefly explain the trend in the plotted

data. Forecast the future rate of unemployment with reasons for your answer.