AQA A-Level Economics 4.2 Macroeconomics overview quiz quiz

Household saving

Investment

Direct taxation

Spending on imports

Consumption, saving, taxation, government spending and total imports

Wages, rent, interest, dividends, profit and retained earnings

Consumption, investment, government spending and net exports

Land, labour, capital, enterprise and entrepreneurial profit

$0.75$

$1.33$

$4$

$7.5$

Excess aggregate demand near full capacity

A rightward shift of long-run aggregate supply

A fall in the general price level

Rising costs of production shifting SRAS left

Vertical at the full-capacity level of output

Horizontal at every possible level of national output and income

Upward sloping throughout, becoming steeper near full capacity

Downward sloping, much like a typical market demand curve

They are simply two different names for exactly the same government statistic

The deficit is annual borrowing; the debt is the accumulated stock of past borrowing

The debt is annual borrowing; the deficit is the accumulated total of all past years

The deficit is a current account trade measure; the debt is a domestic fiscal measure

Raising the central bank base rate of interest

Increasing the budget deficit to boost demand

Selling government bonds on the open market

Investment in education and training

At a lower opportunity cost than other countries

Using fewer factor resources per unit than any other country

At the highest possible selling price on world markets

Without relying on any imported components at all

Imports become dearer and exports cheaper

Imports become cheaper and exports dearer

Both imports and exports become cheaper

There is no effect on trade

The exchange rate is fixed by the central bank rather than being allowed to float freely

Domestic inflation is held below the official central bank target rate

The combined price elasticities of demand for exports and imports exceed one

The government budget is running a comfortable fiscal surplus that year

Frictional unemployment between jobs

Structural unemployment from a skills mismatch

Seasonal unemployment that varies through the year

Cyclical (demand-deficient) unemployment

Growth is a rise in real GDP; development is a broader improvement in living standards

They are identical concepts that economists use completely interchangeably in practice

Development is simply a rise in real GDP, while growth means a fall in the jobless rate

Growth applies only to developing nations, while development applies only to rich ones