Economic growth and the extent to which education is the main cause of regional imbalance

Explain economic growth and discuss the extent to which education is the main cause of regional imbalance, between the north and south of England. How does the current UK Government aim to solve the problem of regional imbalance? Theory of Economic Growth i) How is economic growth measured? ii) Why is Real Gross Domestic Product used instead of nominal GDP? Types of economic growth. Short-run growth. iii) Define and explain the business cycle (diagram) – including the 4 stages and output gaps. iv) What causes the actual growth rate to fluctuate? Long-run growth. v) Define LRAS. Using the Classical (Monetarist) model diagram explain why total output is independent from inflation. vi) What causes LRAS to shift outwards? 2 reasons and provide an example for each cause. Effects of growth. vii) Briefly explain the costs and benefits of growth (2 costs and 2 benefits). Maximum 600-640 words – be concise. Second part of the main body. Relevant data should be used to support the arguments. Research Task. (UK, London, south-east, north-east, north-west, Yorkshire and Humberside). i) Define Gross Value Added. ii) How does Gross Value Added (GVA) show the regional imbalance between the north and south of England? Use the table in the GVA Report from the Office of National Statistics – in the recommended sources. Regional imbalance and Education. iii) To what extent is the regional imbalance caused by differences in education, skills and training? (2-3 reasons). iv) To what extent are other factors responsible for the regional imbalance? (2-3 reasons, with supporting data, fully explained) Third part of the main body. Current Government (Conservative party) policies to reduce regional imbalance. i) Explain one education policy to reduce regional imbalance. E.g. how much will it cost? How long will it take to introduce? How long will it last? How will it work to reduce regional imbalance? ii) Is the policy criticised? (The Labour party may disagree with the policy). Will it work to reduce the regional imbalance? iii) Explain one policy that will support the north to grow. Examples include: regional mayors (elected 2017), infrastructure plans (road & rail) in the north, HS2/HS3, devolved authorities/combined authorities, catapult centres. How much will it cost? How long will it take to introduce? How long will it last? How will it work to reduce regional imbalance? iv) Is the policy criticised? (The Labour party may disagree with the policy/charities/lobby groups/think tanks). Will it work to reduce the regional imbalance in the short-run/long-run? What do you think is the main reason for the regional imbalance between the north and south of England? Will the government’s policies to solve the regional imbalance work in the short-run or long-run or not at all?        

Sample Solution