SQA Advanced Higher Economics National and Global Economic Issues overview quiz quiz

Nominal (money) GDP, which includes price rises

Real GDP, which is adjusted for inflation

The total money supply in the economy

The government's annual budget deficit

A movement from inside the curve towards the curve

A movement along the curve from one point to another

An outward shift of the whole curve

A movement from the curve to a point inside it

Actual output is above sustainable potential output

Actual output is below potential, with spare capacity

The economy is producing exactly at full capacity

Inflation is certain to accelerate rapidly

Aggregate demand growing faster than capacity

A rise in the costs of production shifting supply left

A fall in the general price level over time

An increase in the economy's productive capacity

There is a permanent trade-off between inflation and unemployment

Holding unemployment below the natural rate just raises inflation as expectations adjust

Inflation and unemployment always rise together in the long run

The central bank fixes both inflation and unemployment directly

0.4, the same as the propensity to withdraw

1.4, one plus the propensity to withdraw

2.5, the reciprocal of the propensity to withdraw

4.0, ten times the propensity to withdraw

Whether the economy has spare capacity or is near full capacity

Whether the change came from consumption or investment

The size of the national debt at the time

Whether the exchange rate is fixed or floating

The central bank raising the base interest rate

An increase in government spending on infrastructure

The central bank selling government bonds

A rise in the rate of value added tax

The amount spending exceeds revenue in a single year

The total accumulated borrowing from past deficits

The interest paid on government bonds each year

The same thing as the budget deficit

Interest rates may be near zero and confidence too low to borrow

The government refuses to allow the central bank to act

Quantitative easing is illegal during a recession

Lower interest rates always cause runaway inflation

Raises output but also raises the price level

Lowers output and raises the price level

Raises output and lowers the price level at the same time

Has no effect on output or the price level

Income tax rates and bands on earned income

Spending on health and education

Monetary policy and the setting of interest rates

Economic development and training

Using fewer resources in absolute terms than any rival

At a lower opportunity cost than another country

Only if it has a larger population than its trading partner

Without importing any raw materials at all

Tariffs raise prices for consumers and risk retaliation

Tariffs protect genuine infant industries while they grow

Tariffs can prevent the dumping of below-cost goods

Tariffs raise revenue for the government

The sum of the price elasticities of demand for exports and imports exceeds one

The exchange rate is fixed by the central bank

The country runs a budget surplus at the same time

Export and import volumes never change at all

Inflation and unemployment rates

Life expectancy and years of schooling

Exports and the exchange rate

The budget balance and the national debt