The Bank of England’s Monetary Policy Committee decides to X G I S M T () Expansion / Contraction () raise official interest rates from 0.5% to 2% over a period of months The government introduces a new higher rate of income tax of X G I S M T () Expansion / Contraction () 50% for people with annual incomes of more than £150,000 The government increases revenues from taxes on high-income X G I S M T () Expansion / Contraction () earners by £2bn and uses the money to increase spending on welfare payments to low-income families at £2bn To reduce the size of the budget deficit, the government X G I S M T () Expansion / Contraction () increases VAT from 17.5% to 20% Improvements in the level of labour productivity causes lower X G I S M T () Expansion / Contraction () costs and increased profits for car producers located in the . The Chancellor announces a reduction in the rate of national X G I S M T () Expansion / Contraction () insurance contributions paid on new employees by smaller businesses Key summary points for your notes
The Bank of England’s Monetary Policy Committee decides to raise official interest rates from 0.5% to 2% over a period of months X G I S M T () Expansion / Contraction () The government introduces a new higher rate of income tax of 50% for people with annual incomes of more than £150,000 X G I S M T () Expansion / Contraction () The government increases revenues from taxes on high-income earners by £2bn and uses the money to increase spending on welfare payments to low-income families at £2bn X G I S M T () Expansion / Contraction () To reduce the size of the budget deficit, the government increases VAT from 17.5% to 20% X G I S M T () Expansion / Contraction () Improvements in the level of labour productivity causes lower costs and increased profits for car producers located in the . X G I S M T () Expansion / Contraction () The Chancellor announces a reduction in the rate of national insurance contributions paid on new employees by smaller businesses X G I S M T () Expansion / Contraction () Key summary points for your notes
Circular_Flow_Questions.docx