Answer to Question #106398 in Microeconomics for Shaikh

Question

Since the Uk government has decided to exit from the EU market the automobile industry will face a huge loss in this if the hard brexit is applied by the government and the automobile industry are facing problems how can the government and central bank help the automobile industry ?

Answer 1

If the hard brexit is applied by the government and the automobile industry are facing problems, then the government and central bank can use expansionary fiscal and monetary policies respectively to push the economy and help the automobile industry.