U.K. Aggregate Supply Curve

 

https://ourworldindata.org/grapher/labor-productivity-per-hour-pennworldtable?time=2007..2017&country=~GBR

Other Causes of Change
  • Globalization: over the last decade in particular, the U.K. has become a lot more global. They've begun trading with a lot more foreign countries, as well as communicating with new countries. This means that they have been producing less of their own goods, which is mentioned below. This also means that they will be spending less money on their own industry, meaning that money will be spend instead on trading and foreign products.  
  • Deindustrialization: over the last decade, the U.K has produced a lot less of their own goods and services. This is mainly due to the 2008 financial crisis. In this crisis, individual companies in the U.K. lost a lot of money, meaning they had to be given money by the government in order to stay afloat. This is why they've begun trading with a lot more countries since that financial crisis as well. Since they do not have a lot of their own money to put towards their own innovations, they have had to begin trading with other countries to continue getting products to sell to the public. 
  • More IT development: The U.K. has been investing a lot of their money in technology. A lot of big tech companies, such as IBM and Microsoft, operate in the U.K. Since the 2008 crisis, the U.K. has been steadily gaining more money by trading wisely and spending wisely. This means that in the past five years or so, they've had more money to invest in technology. This has been a big help to their economy, because it has made them a lot of money, as well as helping to steadily increase the GDP per hours worked, as represented in the graph above. 

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