You may have noticed that there is a bit of an economic downturn going on at the moment. For students of economics this means that you need to understand the background to this, possible causes and possible solutions.
As a starting point you should be able to do the following:
1. Explain what is meant by GDP.
2. Identify three points of interest on the diagram below.
3. Using the diagram, explain what is meant by the economic cycle.
4. Identify each of the components of Aggregate Demand and, using these, explain some of the reasons why the UK is currently experiencing low levels of economic growth.
5. With regards to solutions, do some research as to how different countries are coping with the current economic crisis. You might also want to look at how different political parties and different commentators view the issues.