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Changing Spaces; Making Places

Recession, austerity and the government's role in inequality

  • 2 things to know
  • Component 02

Overview

Recall questions on recessions and the economic cycle, cyclical and structural change, the sectors and young workers hit hardest, labour market scarring, the uneven effects of the 2008 recession, government spending and the pupil premium, local funding cuts, postcode lotteries, right to buy, transport investment, and rural service rationalisation.

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Key term

How can a decision on where to build major transport infrastructure create inequality?

Key term

What is a recession?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is a recession?

    Model answer

    A recession is a period of falling national output, conventionally identified when gross domestic product falls for two consecutive quarters.

  2. 2

    Name the four stages of the economic cycle.

    Model answer

    Boom, downturn, recession or slump, and recovery.

  3. 3

    Distinguish cyclical from structural economic change.

    Model answer

    Cyclical change is the short-term rise and fall of activity around a trend, from which an economy recovers, whereas structural change is a permanent shift in which sectors provide the jobs.

  4. 4

    Which sectors are hit hardest in a recession?

    Model answer

    Those whose spending can be postponed, such as construction, the manufacture of durable goods, retail, hospitality and tourism.

  5. 5

    Why do young workers suffer most in a recession?

    Model answer

    They are concentrated in temporary and recently started jobs and so are let go first, and firms also stop recruiting, so those leaving education cannot enter employment at all.

  6. 6

    What is meant by scarring in the labour market?

    Model answer

    Scarring is the lasting damage to earnings and career prospects suffered by people who are unemployed early in their working lives, which persists long after the economy has recovered.

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AThe lower quartile is the 2nd value, 11 cm.
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