Measurement of Macroeconomic Performance

Question 1

what is the UK’s annual growth rate

Answer 1

2.1%

negative output gap of -0.35%

Question 2

total GDP in the u.k.

Answer 2

approx £2 trillion

Question 3

unemployment rate

Answer 3

4.7%

full employment is 4.5%

Question 4

what is the current account defecit

Answer 4

-2.4% of GDP

Question 5

what is the CPI in the u.k.

Answer 5

2.3%

Question 6

what is a fall in the budget defecit is most likely to increase?

Answer 6

unemployment

Question 7

what does expansionary fiscal policy do the size of the budget surplus?

Answer 7

decrease it

Question 8

according to the accelerator, when is most investment likely to occur

Answer 8

when the rate of growth of national income is increasing

Question 9

increase in the budget defecit means what for AD

Answer 9

ad shifts out

Question 10

decrease in the budget defecit means what for AD

Answer 10

ad shifts in

Question 11

when an economy is in the boom phase of an economic cycle what happens to spare capacity

Answer 11

there is a reduction

Question 12

what happens if the budget defecit decreases

Answer 12

AD falls

Question 13

what happens if the budget defecit increases

Answer 13

AD rises

Question 14

contractionsry monetary policy

Answer 14

form of economic policy used to fight inflation involving decreasing the money supply in order to increase the cost of borrowing

decreasing GDP and reducing inflation

Question 15

contractionary fiscal policy

Answer 15

increasing taxes
decreasing gov spending

in order to fight inflation

lowers disposal income to decrease consumption