Families Cut Spending by Unprecedented Amounts

The video discusses the economic challenges faced due to unprecedented inflation and stagnation in world trade. It highlights the impact on household spending, particularly during the 2008-2009 recession, and how spending habits have shifted, with younger households cutting back more than older ones. Consumer spending, which constitutes a significant portion of GDP, is crucial for economic recovery. The video also touches on the cautious recovery in 2011, termed as the year of the reluctant spender.

What has been a significant factor in the economic challenges discussed in the video?

• Soaring inflation

• Rising consumer confidence

• Increasing world trade

• Decreasing inflation

According to the Institute of Fiscal Studies, how much did household expenditure fall during the 2008-2009 recession?

• 15%

• 20%

• 5%

• 10%

Which age group has reduced their spending the fastest according to the video?

• Under 35

• Over 64

• 35-50

• 50-64

What percentage of GDP is made up by consumer spending?

• 75%

• 65%

• 50%

• 85%

How did the Bank of England governor describe the year 2011?

• Year of the reluctant recovery

• Year of economic boom

• Year of high inflation

• Year of increased spending