When there is a Strong Pound:

Imports are cheaper, exports are dearer

What does Fiscal Policy control?

Government Spending and Taxation

Monetary policy involves

Interest rates, exchange rates, restrictions on money supply

Expansionary Monetary Policy

Increasing aggregate demand using low interest rates etc

Injections into the circular flow of income

Exports, investment, government spending

Customer Price Index Excludes

Mortgage Interest Payments+ Council Tax

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Economics AS Macroeconomics AQA

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As Economics Macro AQA Portsmouth College

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Questions 22

Answers

1
Transitional unemployment due to people moving between jobs
Cyclical Unemployment
Seasonal Unemployment
Structural Unemployment
Frictional Unemployment
2
When there is a Strong Pound:
Exports are dearer, imports cheaper
Imports are cheaper, exports are dearer
More growth, imports dearer
Weak exchange rate, imports dearer
3
When does a positive output gap occur?
Boom
Negativity
Recession
4
Expanding the productive potential (Long-run aggregate supply)
Supply-Side Policy
Taxation
Demand-Side Policy
Fiscal Policy
5
When a firm or whole industry changes from being run by the public sector to the private sector
Publication
Privatisation
Black Market
Public Goods
6
When there is a long run decline in demand in an industry leading to a reduction in employment
Cyclical Unemployment
Voluntary Unemployment
Seasonal Unemployment
Structural Unemployment
7
What does Fiscal Policy control?
Taxation and Interest Rates
Government Spending and Taxation
Government Spending and Exchange Rate
Exchange Rates and Inflation
8
Two consecutive quarters of negative economic growth
Boom
Recession
Inflation
Revenue
9
Aggregate Demand=
AD= S+T+M = G+I+X
AD= C+I+G+(X-M)
AD= C+X-I+(G-M)
AD= C+I+G+(X+M)
10
Where the government deliberately change their level of spending and tax
Discretionary Policy
Contractionary Monetary Policy
Monetary Policy
Expansionary Monetary
11
Monetary policy involves
Interest rates, exchange rates, restrictions on money supply
Government spending, interest rates
Money, tax, government spending
Exchange rates, taxation
12
Currency outflows exceed currency inflows
Current Account Deficit
Current Account Surplus
Debt
Budget Surplus
13
The proportion of a loan that is charged as interest to the borrower
Injection
Index
Inflation
Interest Rates
14
Inflation caused by the rising cost of inputs to production.
Cost-Pull Inflation
Demand-Pull Inflation
Cost-Push Inflation
Demand-Push Inflation
15
The increase in final outcome arising from any new injection of spending
Deflation
Accelerator Process
Multiplier Effect
Exelerator
16
Expansionary Monetary Policy
Reducing aggregate demand by restrictions on money supply
Increasing aggregate demand using high interest rates
Reducing aggregate demand using low tax etc
Increasing aggregate demand using low interest rates etc
17
Figure has not been adjusted for inflation
Inflation
Nominal GDP
Real GDP
RPI
18
Injections into the circular flow of income
Imports, exports, taxes
Savings, taxes, exports
Imports, government spending, investment
Exports, investment, government spending
19
Customer Price Index Excludes
Goods
Local Newspapers
Households in the top 4% of incomes
Mortgage Interest Payments+ Council Tax
20
Withdrawals of the circular flow of income
Savings, government spending, interest
Imports, savings, taxes
Exports, investment, taxes
Exports, taxes, government spending
21
A record of a country's international transactions
Budget Deficit
Aggregate Supply
Balance Of Payments
Balance of trade deficit
22
Falls in cost of production, increase in labour productivity, reduction in indirect taxes
Leftward shift in LRAS
Rightward shift in SRAS
Rightward shift in LRAS
Leftward shift in SRAS

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