Theme 2 Edexcel Economics

What does GDP measure

• inflation
• unemployment
• output
• international transactions

real figures

• are adjusted to include inflation
• is the raw data collected
• are adjusted to remove the effects of inflation
• are nominal figures

GDP is a measure of

• volume

• revenue

• value

• profits

problems using GDP to measure living standards include all except...

• exchange rate
• informal economy
• distribution of income
• regional variations

Deflation is...

• a fall in the rate of inflation
• prices rising at a slower rate
• average price level falling
• increase in the average price level

Which of the following is officially used to measure inflation

• Consumer price index

• ILO

• Claimant count

• Retail price index

Inflation can be caused by all except

• export led growth
• decrease in SRAS
• increase in AD
• increase in LRAS

All of the following are used to calculate CPI except

• basket of goods
• annual expenditure survey
• weights
• housing costs

unemployment is

• able to work but not looking for work
• actively seeking work but currently out of work
• able to work but refuses to work for minimum wage
• wants to work more hours

structural unemployment is

• caused by the decline of an industry
• caused by being between jobs
• caused by a lack of AD
• caused by seasonality