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Economics - Macro. Introduction. 1. Flashcards | StudBud

Explore/Economics - Macro. Introduction. 1.

Economics - Macro. Introduction. 1.

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The basics.

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Questions 10

Answers

1
If Aggregate Demand decreases which will worsen:
Inflation.
Unemployment.
The BOP current account.
The Balance of Trade.
2
How is the cost of living measured ?
The PMI
Using the CPI.
Using the RPI
The FTSE 100.
3
There is a trade off between which macro economic variables (in the short - run):
Unemployment and Economic Growth.
BOP and inflation.
Full - Employment and economic growth.
Inflation and economic growth.
4
Successful Supply Side Policy will:
Reduce economic growth.
Worsen the BOP
Reduce unemployment.
Increase the rate of inflation.
5
What is macro economics about ?
Individual markets.
Explaining why monopolies make big profits.
Aggregated Data / Whole economies.
Wages for a specific firm.
6
If Aggregate Demand falls which is likely to worsen:
Inflation.
RPI
BOP current account
Unemployment.
7
Which is not one of the fundamental objectives of economic policy ?
Full - employment.
A favourable BOP.
Full - unemployment.
Low inflation.
8
How is unemployment measured using the ILO method ?
By doing a survey at the local pub.
A survey of those available,ready and willing to work.
Using the RPI.
A claimant count.
9
A reflationary fiscal policy would (ceteris paribus):
Increase economic growth.
Increase a current account deficit.
Reduce inflation.
Decrease the rate of economic growth.
10
What is an expansionary or Reflationary monetary policy ?
An increase in Government expenditure.
A reduction of tax rates.
An increase in tax rates.
A reduction in the bank rate. By the B of E.