How might this impact on the economy over time through its effects on: a) business confidence an

Imagine that towards the end of its term (2017), the government surprises the city one morning by announcing that ‘in the interests of modernity, and in order to encourage more young people to become students, graduate and help the future economy’, they have replaced 5 of the 9 person Monetary Policy Committee of the central bank with students (about to graduate in economics). In addition, they announce a package of government spending on education including increased grants for students studying business, technology and science. How might this impact on the economy over time through its effects on:



a) business confidence and investment?
b) potential output?