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Economic Growth and Unemployment - Dissertation Example

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The research study "Economic Growth and Unemployment" will focus on the relationship of economic growth and problem of unemployment in the UK Economy. According to the predictors of economic growth, the UK economy is expected to retrieve growth from the year 2010.
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Economic Growth and Unemployment
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Economic Growth and Unemployment

Download file to see previous pages... 2.1 Theories of Economic Growth in UK
For several years, economists have debated on the drivers of economic growth of a country. In this section of the research proposal, certain ideas of economists will be reviewed to present a concrete idea about the driving factors.
According to articles released by Tutor2u (2010), the best definition for economic growth would be to determine it as a “long term expansion of the productive potential of the economy”. The theory suggests that for measuring the economic growth trend, at least data of past 20 years is required. This is essential for calculating the average rate of growth and identifying different cycles of economic growth. This trend calculation also allows for estimating the future rate of growth sustainability without creating any increase in the pressure of inflation (Tutor2u, 2010).
The chart above demonstrates the potential level of national income for the UK economy over the last 30 years. The trend shows that the UK’s national income is expected to rise every year except certain uncertainties. Another essential factor of the chart is the long run average potential for growth.
2.2 Theories Related to the Economic Growth and Employment in UK
The focus of the literature review is to measure the relationship between the rate of growth and level of employment in the UK economy.
Data released by Department for Business Innovation and Skills (2010) shows the co-movement of UK’s GDP and employment since the last 30 years. ...Download file to see next pagesRead More
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