Macro Economics Objectives Quiz

Changes in Real GDP are used to measure...

• Inflation

• Economic Growth

• The level of employment

• Distribution of Income

Which one of the following is the most likely reason for a fall in the unemployment rate?

• Increasing Unemployment Benefits payments

• Decreasing real GDP

• Increasing consumer spending

• Decreasing funding for apprenticeships

An economy has a current account surplus. Which of the following is likely to lead to a reduction in that surplus?

• Falling growth in the world economy

• An increase in domestic productivity

• A rise in international competitiveness for goods from that country

• Increasing growth in the world economy

Nominal GDP has been adjusted to account for inflation

• True

• False

Which of these may result in an under-recording of the real level of GDP in an economy.

• Low levels of skill

• Low inflation

• Increasing productivity

• Increasing "black market" activity

What is the Bank of England's target level for inflation

• 2%

• 3%

• 3.5%

• 5%

What is used as the main (official) measure for inflation in the UK?

• Retail Price Categories

• Retail Price Index (RPI)

• Consumer Price Index (CPI)

• Consumer Spending