Aggregate demand and supply - OCR A-Level Economics (H460) quiz

Investment

Household saving

Taxation

Spending on imports

Saving is zero

Planned injections equal planned withdrawals

Imports equal exports

The government exactly balances its annual budget

C + I + G + (X + M)

C + S + T + M

C + I + G + (X - M)

C + I - G - X

Consumption

Government spending

Imports

Investment

Energy and input costs rise

Wages and raw-material costs fall

Productivity rises

The pound strengthens

Higher real output only

Only a higher price level, because LRAS is vertical

Permanently lower unemployment with no rise in the price level

A leftward shift of LRAS

The level of the government budget deficit and nothing else

The exchange rate alone

The output gap and the shape of aggregate supply

The size of the population

Consume, invest and export

Spend, save and consume

Borrow, lend and save

Save, tax and import

1.25

4

5

8

The rate of change of output

The level of national income

The size of the budget deficit

The level of imports

Any fall in the inflation rate

Two consecutive quarters of falling real GDP

A single quarter of unusually slow but still positive growth

A positive output gap

Lower inflation

A guaranteed permanent rightward shift of the LRAS curve

A guaranteed fall in inequality

Demand-pull inflation and environmental damage