AQA GCSE Economics (8136): How the economy works overview quiz quiz

Maximising the profits of every firm

Removing all taxes

Low and stable inflation

Increasing the number of banks

The total amount of money held in all of the country's banks at one time

The total amount of taxes collected by the government in a year

The total number of people who are currently in paid work

The total value of goods and services produced in a country in a year

real GDP

the population

the number of firms

the inflation rate

frictional

cyclical

structural

seasonal

By the official unemployment rate each month

By the size of the total GDP figure

By the Consumer Prices Index (CPI)

By the exchange rate against the dollar

total demand in the economy growing far faster than supply can

a sudden fall in the total money supply

lower interest rates set by the central bank

rising costs of production such as wages and raw materials

The government increasing spending on schools and roads

The Bank of England changing the base interest rate to control inflation

A change in the exchange rate of the pound

A commercial bank approving a loan for a customer

The Prime Minister and the Cabinet

The Bank of England

The high street commercial banks

The European Union's central bank

reduce borrowing and spending across the whole economy

raise the value of the currency and nothing else

increase borrowing, spending and total demand

have no real effect at all on the wider economy

make exports dearer and imports cheaper

have no effect on trade

raise both exports and imports equally

make exports cheaper and imports dearer

trade deficit

trade surplus

balanced budget

budget surplus

A much wider choice of cheaper imported goods for consumers

Job losses as firms move production abroad to cut costs

Faster spread of new technology between countries

More foreign investment flowing into the country