Economics - to develop an understanding of what has happened in the Essay - 1

Economics - to develop an understanding of what has happened in the economy of the United Kingdom everyplace the last cardinal years - Essay ExampleThe GDP of a country signifies the countrys overall harvest. This indicates the heightened level of the economic activities and the high demand for the currency. The increase in the GDP always raises questions regarding the raised inflation levels as well which acts as an indicator to the monetary authorities to increase the interest levels within the country. The GDP and fanfare are normally based on two main concepts a) Consumer Prices Index and b) Retail Prices Index. The United Kingdom has seen a growth in the CPI over the years so as in the RPI. According to the national statistics, the CPI increase has been 5.2% and that of the RPI has been 5%. The increase in CPI and RPI is based a cover on the government and hope of England contributions and looking at the stats it is very evident that the two have been contributing positive ly to the growth of the country (National Statistics Inflation, 2008). The graph shows the growth over the past 4 years and if noticed there has been an increase however this is expected to fall drastically over the next year.The Government and the Bank of England have made solid efforts to help the economy of the country. After studying the economy for the period 2006 2008, it has been noted that the Government and the Bank have played a very important role in the growth of the countrys economy. There have been constant efforts from the Government and the Bank of England to help the banks improve the online situation the government has taken steps of 50 billion pounds plan to nationalize the banks partly and also a promise of 250 million pounds has been made in the future. The Prime Minister has referred to this as a radical plan to assists the banks recover and get back into the normal course of business at the earliest. The Bank of England on the other hand has made available a t least 200 billion pounds as short term loans to help