Assignment 3

Length/Size/Amount: 2,500 words

Value: 50% of the overall mark in the unit Relevant material:

Content covered from Week1-12

Relevant learning outcomes:

Discuss and explain intermediate macroeconomic theory. Demonstrate a broad knowledge of core areas of macroeconomics.

Reason logically and work analytically. Critically examine macroeconomic theory and macroeconomic policies and analyse their impact.

Justify conclusions using economic arguments with appropriate rigor.

Task “The Nobel prize-winning economist Paul Krugman has said there is “zero chance” Brexit will boost trade and has slapped down suggestions that leaving the European Union will make Britons better off” (Chu 2017). Chu, B. 2017. Brexit: “’Zero chance’ leaving EU will make Britons better off”, 26 Sep, http://www.independent.co.uk/news/business/brexit-paul-krugman-zero-chancebritain-better-off-eu-leave-single-market-custom-union-exports-trade-a7965871.html Write a report on economic consequences of BREXIT for United Kingdom. The report should include the following: – The role BREXIT on living standards in United Kingdom (UK) – The expected changes in trade patterns in UK – The expected changes in UK’s obligations towards European Union – The impact on UK’s labour market – Exchange rate of the British Pound – The growth prospects of the UK economy