The UK’s government is undertaking a study to understand the economic impact of some domestic and global events. You have been contacted as a consultant of the business environment to present a report to the government by answering the following questions.
1. Using the circular flow of income, explain the main impacts of the ongoing war in Ukraine on the UK’s economy? Consider both the short-term and long-term economic impacts.
2. What economic recommendations if any can be provided to the government of UK to remedy any negative effects of the war in Ukraine on the UK’s economy?
3. What economic recommendations if any can be provided to the Central Bank of UK to remedy any negative effects of the war in Ukraine on the UK’s economy?
