Issues Term 2 W11

SW2: Perhaps a better economic plan utilises both planned and free market characteristics

W: There are two main different ideas about economies - free or planned

W: Our economies affect every aspect of our lives.

W: The central bank makes all of the major economic decisions in a country

SW1: When a market is well balanced, inflation goes up at a controlled rate.

W: Strong economies have a market equilibrium that balances supply and demand naturally

SW2: When a market is not well balanced, inflation increases too quickly and people suffer.

SW1: Free economies are a balance between supply and demand; whereas a planned economy is dictated usually by a governing body.

SW2: During recessions, there is great instability in job markets, banking systems and supply chains. So all of this is important!

SW1: Without a balanced economy, countries can be thrown into a recession.

SW1: While the goal is keep an economy thriving, sometimes things out of our control can cause economic hardship

SW2: Thankfully, Central banks have the power to print money when necessary to shift economies.