This document provides solutions to a Business Environment exam (BMP4003), focusing on key economic concepts and their application to the UK economy. It covers economic cycles, including expansion, peak, contraction, and trough, and discusses the circular flow of income. The solutions also address unemployment, exploring measurement methods and types such as demand deficit, frictional, structural, and voluntary unemployment. Supply-side policies aimed at reducing unemployment are examined, along with the role of the Monetary Policy Committee in managing inflation. Furthermore, the document analyzes the impact of the Covid-19 lockdown on the UK economy, focusing on the labor market, financial well-being, and trade. Finally, it discusses sustainable economic growth strategies, including investing in people, building economic foundations, and growing businesses. Desklib offers a platform for students to access this and many other solved assignments.