§ Mr. Austin Mitchell
asked the Chancellor of the Exchequer what is his estimate of the percentage increase in the demand for (a) imported semi-manufactures and (b) imported finished manufactures for each 1 per cent. increase in the level of economic activity.
§ Mr. Lawson
The current version of the Treasury model incorporates an elasticity with respect to economic activity of around 1 for the volume of imports of semi-manufactures and of around 1½ for imports of finished manufactures. These462W estimates, which are subject to a wide margin of error, depend on the nature of the change in economic activity.