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Which of the following is an injection into the circular flow of income?
Taxation
Savings
Exports
Consumer expenditure
How would a fall in the price level be shown on an aggregate demand (AD) diagram?
A shift to the right of the AD curve
A shift to the left of the AD curve
A movement down the AD curve
A movement up the AD curve
An increase in long run aggregate supply may lead to:
lower inflation and an increase in real output
lower unemployment and a fall in real output
higher unemployment and lower inflation
A higher inflation and a fall in real output
What impact will a fall in investment have on the aggregate demand curve?
Shifts the aggregate demand curve to the right
Movement down the aggregate demand curve
Movement up the aggregate demand curve
Shifts the aggregate demand curve to the left
In the model of the circular flow of income, which of the following will cause national income to increase?
An increase in taxes
An increase in government spending
An increase in imports
An increase in savings
Which factor would be most likely to lead to an increase in the size of the labour force?
A reduction in the retirement age
An increase in income tax levels
An increase in inward migration
An increase in unemployment benefits
In which circumstance will structural unemployment arise?
An increase in the base rate of interest reduces demand for
A construction worker is laid off during a period of bad wea
A bricklayer leaves his employment voluntarily
Automation results in factory workers being made redundan
In what economic climate would money be most at risk of not fulfilling its function as a medium of exchange?
Inflation
Hyperinflation
Disinflation
Deflation
Which of the following is a component of the Human Development Index?
Air quality
Cost of crime
Life expectancy at birth
Income inequality
Which of the following is a harm caused by a high rate of inflation?
Imports become relatively more expensive
Real wage flexibility occurs
Investment decreases
The real value of debt increases
Which of the following is a definition of hyperinflation?
Prices are rising excessively
Prices are falling
Prices are constant
Prices are rising at a slower rate than previously
Which economic activity is found in the secondary sector?
Producing cars
Providing insurance
Banking
Growing corn
What is included in the calculation of RPI inflation but excluded from the calculation of CPI inflation?
Petrol
Children's clothes
Council tax
Medicines
Frictional unemployment occurs when:
the economy is in a period of recession
farm workers do not have a job during the winter months
cheap steel from abroad reduces demand for UK steelworkers
workers are transferring between jobs
If real GDP in 2019 was $482bn and $476bn in 2020, what was the rate of economic growth in 2020?
-1.26%
1.26%
1.24%
-1.24%
For a country, the CPI was 108 in 2018 and 120 in 2019. What was the inflation rate, to the nearest whole number, as measured by CPI in 2019?
+11%
+10%
+12%
- 12%
