Theme 2: The UK economy - performance and policies - Edexcel A-Level Economics A quiz

Real GDP is at current prices; nominal GDP is adjusted for inflation

Real GDP is adjusted for inflation; nominal GDP is at current prices

Real GDP divides by population; nominal GDP does not

There is no difference between them

The Retail Prices Index (RPI), the older inflation measure

The GDP deflator for the whole economy

The Consumer Prices Index (CPI)

The monthly Claimant Count of benefits

Household saving by the personal sector

Total taxation revenue collected

The interest rate set by the central bank

Net trade (exports minus imports)

A movement along the AD curve

A rightward shift of the AD curve

A leftward shift of the AD curve

A shift of the LRAS curve

Horizontal at every possible level of national output

Vertical at the full-employment level of output

Upward-sloping in just the same way as the SRAS curve

L-shaped with a flat then vertical section

0.2

1.25

4

5

Household saving

Spending on imports

Government spending

Taxation revenue

Producing below potential, with spare capacity

Producing above its sustainable trend with inflationary pressure

In a boom phase of the cycle

Growing its productive capacity

The Treasury, the government's main economic department

The Monetary Policy Committee of the Bank of England

The Competition and Markets Authority watchdog

Parliament, by a vote of all sitting members

Lower inflation always brings lower unemployment

Reducing a deficit always raises growth

Faster growth can cause higher inflation

Supply-side policy worsens the current account