Demand or Supply Side Shocks

Question 1

A rise in the global price of energy is likely to lead to higher UK unemployment

Accepted Answer

True

Question 2

A rise in the global price of energy is likely to lead to an increase in the UK spare capacity

Accepted Answer

True

Question 3

Unexpected breakthroughs in production technology

Accepted Answer

Supply side shock for UK

Question 4

A rise in the global price of energy is likely to lead to higher UK business investment

Accepted Answer

False

Question 5

Unexpected tax increases or cuts to welfare benefits

Accepted Answer

Demand side shock for UK

Question 6

Natural disasters causing sharp fall in production

Accepted Answer

Supply side shock for UK

Question 7

Political turmoil / strikes

Accepted Answer

Supply side shock for UK

Question 8

A rise in the global price of energy is likely to lead to higher UK economic growth

Accepted Answer

False

Question 9

Financial crisis causing bank lending /credit to fall

Accepted Answer

Demand side shock for UK

Question 10

A rise in the global price of energy is likely to lead to more government spending

Accepted Answer

True

Question 11

There is an economic downturn in a major UK trading partner. Demand or Supply side shock?

Accepted Answer

Demand side shock for the UK

Question 12

Steep rise in oil and gas prices or other commodities

Accepted Answer

Supply side shock for UK

Question 13

Bigger than expected rise in unemployment rates

Accepted Answer

Demand side shock for UK

Question 14

A rise in the global price of energy is likely to an improvement in the UK's Balance of Trade

Accepted Answer

False

Question 15

A rise in the global price of energy is likely to lead to higher UK inflation

Accepted Answer

True

Questions 15