CoR Macro

• Increased inflation --> Increased Wage demands from workers --> Increased cost of production --> Increased unemployment --> Decreased SRAS --> Decreased Output --> Decreased economic growth
• Depreciation in the pound --> Increased price of imports --> Decreased price of exports --> Increased Consumption of domestic goods --> Increased net trade balance --> Increased AD --> Increased Growth
• Decreased corporation tax --> Increased Business profit --> Increased investment --> Increased quality of infrastructure --> Increased productivity --> Increased AS --> Increased employment --> Increased Economic Growth